Life Insurance For Pets: Is It Worth It?

Life insurance for pets is a real thing. While it may sound like a joke premise, pet life insurance is an option for owners of pricey pets. As with life insurance for humans, it covers funeral expenses and reimburses the animal's value if it is stolen or dies. However, it is not a common type of insurance and is generally only for pets that are considered valuable, such as show dogs, service animals, or rare breeds. The cost of pet life insurance depends on factors like the pet's age, breed, species, and whether it generates income.

What does pet life insurance cover?

Pet life insurance, often referred to as animal mortality insurance, provides financial coverage for pets in the event of illness, injury, or death. While human life insurance is available to everyone, pet life insurance is primarily designed for high-value animals, such as show or breeding pets, livestock, racehorses, service dogs, and zoo animals.

Pet life insurance typically covers:

• Animal theft
• Full animal mortality
• Limited animal mortality
• Optional medical endorsements

Common perils covered by pet life insurance include:

• Accidental shooting or drowning
• Accidents during transit
• Death due to fire, flood, tornado, earthquake, lightning, or other weather events
• Illness related to a sustained injury
• Wild animal or predator attacks

The cash benefit paid out upon a pet's death is typically used to cover cremation, burial, or funeral costs. Some policies might even help pay for bereavement counselling. More expensive policies may also cover the cost of replacing your animal, along with "loss of use" or revenue lost during the time it takes to replace your pet.

It's important to note that pet life insurance doesn't cover any medical expenses. Instead, it's most beneficial for those who may suffer a financial loss from the death of an animal, such as someone with a show dog or a service dog that requires expensive training.

When deciding if pet life insurance is right for you, consider your financial situation, your pet's age and health, the length of time you'll need coverage, and the potential impact of losing your pet to anything other than natural causes. Pet life insurance premiums can be costly, so it's important to weigh the benefits against the potential costs.

What doesn't it cover?

Pet life insurance, also known as mortality and theft insurance, covers only funeral and end-of-life expenses. It does not cover accidents, illnesses, or injuries to your pet while it is alive. If you want coverage for those things, you would need to purchase a traditional pet health insurance policy.

Pet life insurance plans will not cover a cause of death that isn't specifically listed in the policy. Hereditary diseases, for example, are typically excluded from coverage. If your pet dies as a result of a health condition to which its breed is predisposed, you will most likely not receive a payout.

Additionally, pet life insurance does not cover death due to old age. Before issuing a policy, the insurer will request a health examination, and if this reveals any serious health conditions, the insurance company may refuse coverage or approve it with exclusions.

Pet life insurance is not designed to replace income, so it will not cover breeding fees or product endorsements unless your pet is generating income.

Is it worth getting?

So, is pet life insurance worth getting? Well, that depends on your circumstances.

First of all, it's important to note that pet life insurance is not the same as pet health insurance. The latter is far more common and is essentially animal health insurance, covering vet bills and medical expenses. Pet life insurance, on the other hand, is designed to cover the costs that come with losing a pet due to a sudden accident or illness. It is also known as mortality and theft insurance.

Pet life insurance is generally only taken out on very valuable pets, such as show dogs, breeding dogs, or rare breeds. It can also be a good idea for service dogs, which are expensive to train, and for owners who want to give their pet a proper send-off, as it covers funeral expenses.

However, pet life insurance is expensive. The average cost is around $250 to $900 a year, and it's unlikely to be a worthwhile investment unless you have a very valuable animal, especially if you already have traditional pet health insurance. It's also worth noting that pet life insurance doesn't cover accidents, illnesses, or injuries—for that, you need pet health insurance.

Ultimately, whether or not you need pet life insurance is a personal decision. However, it's worth bearing in mind that, for family pets, the cost of premiums is likely to exceed the value of the benefits.

How much does it cost?

The cost of life insurance for pets depends on several factors. The price of the premium is determined by the pet's age, breed, species, and health status. The type of policy, whether it is a full or limited mortality policy, will also affect the price, with full mortality policies costing more. The deductible amount will also impact the premium, with higher deductibles resulting in lower monthly premiums. The value of the animal will also influence the premium, with more expensive animals costing more to insure. The location of the owner can also affect the price, due to geographic variations in the value of animals and the cost of funerals.

The cost of insuring a pet can vary from $250 to $900 or more per year, with some sources giving a range of $250 to $700 for annual costs. Prices can go even higher for dogs that are used for breeding, with their potential for lost income if they were to die. For example, a $10,000 dog used for breeding could cost around $900 a year for a female and $700 a year for a male.

The cost of life insurance for pets is generally considered to be quite expensive and is not likely to be a worthwhile investment unless the pet has a high value. The average cost is approximately $250-$900 a year, which means that for a dog that lives ten years, you would spend $9,000 to $90,000 on premiums. Given the cost, it is recommended that owners only invest in life insurance for their pets if they have a very valuable animal, or if they are uncomfortable with the risk of not having coverage.

It is important to note that pet life insurance is different from pet health insurance, which covers the cost of veterinary care and is a more affordable and accessible option for the average pet owner.

Where can you get it?

Pet life insurance is less common than pet health insurance, so it is not offered by major life and pet insurers. Those interested in this type of coverage will have to seek out specialty insurers. Some companies that offer these policies include:

• Ark International Group
• 24PetWatch
• AKC Pet Insurance
• Figo
• Pets Best Insurance

You can find other providers by searching for "animal mortality insurance" online. Searching "pet life insurance" may lead you to pet health insurance policies instead.

Frequently asked questions