Pet Insurance: Securing Your Pet's Future

Life insurance for pets, also known as mortality and theft insurance, is an option for pet owners. This type of insurance is most often purchased for working pets, such as show dogs or service dogs, or for pets that hold sentimental value for their owners. While it may seem unusual, pet life insurance can provide financial protection in the event of a pet's death, covering burial or cremation costs, and even bereavement counselling. It is important to note that pet life insurance does not cover veterinary expenses, and eligibility requirements vary among insurance providers.

What is pet life insurance?

Pet life insurance, often referred to as animal mortality insurance by insurance carriers, is a policy that pays out to pet owners in the event of their pet's death. This type of insurance is usually purchased for working animals that generate revenue, such as show dogs or police dogs, or for valuable breeds such as French Bulldogs. It can also be a worthwhile investment for service dogs, which are typically expensive to train, and in the case of bereavement, as pet life insurance covers funeral expenses.

Pet life insurance policies vary, but they generally provide a cash benefit after an unexpected pet death from a covered reason, such as severe weather, fire, collisions, earthquakes, falling objects, or explosions. Some policies also cover the loss of a pet due to theft, and more expensive policies may cover the cost of replacing your animal, along with "loss of use", reimbursing revenue lost during the time it takes to replace your pet.

Eligibility and Requirements

Pet life insurance isn't always available to everyone. Eligibility requirements vary depending on the insurance carrier, and some providers are selective about whom they sell a policy to. They may only cover pets that produce income or are valuable for another reason, such as police dogs, show dogs, service dogs, or prizewinning racehorses. When applying, you may need documentation proving your pet meets the insurance carrier's requirements, and it may be tougher or more expensive to get a policy if your pet is older or has pre-existing conditions.

Types of Pet Life Insurance Policies

There are two main types of pet life insurance policies: limited mortality and full mortality. A limited mortality policy will only cover pet deaths caused by certain specified conditions and typically won't cover death by natural causes or illnesses. Covered causes might include derailments while loading or travelling with your pet, severe weather, or falling objects. A full mortality policy will pay a benefit upon your pet's death, regardless of the cause, although whether this includes natural death or pre-existing conditions will depend on the individual policy's terms.

Pet life insurance is not necessary for the average dog or cat owner. However, it can be beneficial for pet owners who may lose valuable income or investments if their pet dies, or for those who consider their pets as family members and want to cover funeral expenses.

How does pet life insurance work?

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

Pet life insurance reimburses the value of the animal, provides replacement of future income, and covers the cost of pet funeral services. It is technically your personal property, but unlike other possessions, the value of your pet is not covered by renters or homeowners insurance.

Pet life insurance covers common perils such as accidental shooting or drowning, accidents during transit, death due to natural disasters, illness related to a sustained injury, and wild animal or predator attacks. Coverage will depend on age, breed, and pre-existing conditions.

When acquiring life insurance for your pet, you will fill out an application detailing your pet's breed, age, and health status. Should your pet pass away due to a covered event, you must submit a claim and provide proof of death, such as a death certificate from a veterinarian, to receive the death benefit specified in your policy.

The cost of pet life insurance, or the premium, is determined by several factors, including the use of the animal, its value, health, age, and location. Annual premiums can range from $250 to $900 or more, depending on the type of animal, age, breed, and extent of coverage.

Pet life insurance is a niche offering, with only a handful of companies providing coverage. Some providers include The Hartford, Ark Agency Animal Insurance, Sanger Insurance, and Marnitz & Associates.

What does pet life insurance cover?

Pet life insurance, also known as mortality and theft insurance, is a type of insurance that covers the cost of your pet's funeral, reimburses the value of the pet, and replaces future income in the event of your pet's death. It is most often purchased for working pets, such as show dogs, which can generate revenue through breeding or endorsements.

Pet life insurance covers funeral expenses, including cremation or burial costs, and can also reimburse you for the value of the animal if it is stolen or disappears. This type of insurance is especially relevant for expensive purebred pets, which can cost thousands of dollars.

Additionally, pet life insurance provides replacement of future income for elite animals, such as show dogs or those that generate revenue through product endorsements or breeding fees.

It is important to note that pet life insurance is not a health insurance policy and does not cover acute healthcare, preventive care, or health problems arising from hereditary conditions.

The cost of pet life insurance varies depending on factors such as the pet's age, breed, species, and location. The higher the death benefit and the lower the deductible, the more expensive the premium will be.

On the other hand, pet health insurance covers veterinary care costs for unforeseen medical expenses, such as non-pre-existing illnesses and injuries. It helps offset the costs of vet visits and makes healthcare more affordable for your pets.

Is pet life insurance worth it?

Pet life insurance, also known as mortality and theft insurance, is a type of insurance that covers the cost of your pet's funeral, reimburses the value of the pet, and replaces future income in the event of theft or death. It is most often purchased for working pets or pets with economic value, such as show dogs, service dogs, or purebred dogs. The cost of pet life insurance can range from $250 to $900 per year, depending on factors such as the pet's age, breed, species, and location.

Pet life insurance may be worth considering if you have a pet with a high economic value or one that generates income, such as a show dog or a breeding dog. It can also be valuable for service dogs, which are typically expensive to train, or for purebred dogs with a high market value. Additionally, if you consider your pet as a family member and want to provide a proper send-off in the event of their death, pet life insurance can help cover funeral expenses.

Pet life insurance may not be necessary for the average pet owner with a healthy, low-value pet. The cost of insurance can be prohibitive, especially when paired with regular pet insurance, and may not provide much benefit if your pet rarely gets sick or injured. If you have sufficient savings to cover unexpected veterinary costs or end-of-life expenses, pet life insurance may not be a worthwhile investment.

If you decide that pet life insurance is not worth it for your situation, there are alternatives to consider. You could contribute to a high-yield savings account specifically for veterinary expenses, ensuring that you have funds available if your pet requires unexpected treatment. Additionally, some veterinary clinics offer payment plans or reduced rates, and crowdfunding campaigns or charitable organizations can provide financial assistance in times of need.

Ultimately, the decision to purchase pet life insurance depends on your individual circumstances and preferences. If you have a high-value pet or one that generates income, pet life insurance can provide valuable peace of mind. However, for the average pet owner, the cost may outweigh the benefits, especially if you have other financial options available to cover unexpected veterinary expenses.

How to choose the right pet life insurance?

Choosing the right pet insurance can be a challenging task. Here are some steps to help you select the best plan for your furry friend:

Identify your goals

Everyone's reasons for getting pet insurance are different, and these reasons can significantly change the kind of policy you're looking for. For example, you may want to ensure you can always prioritise your pet's care over your wallet, or you may want to avoid big financial shocks from your pet's healthcare. Knowing your goals will help you decide on the level of coverage, reimbursement rates, and add-ons you may want.

Consider your pet's age, breed, and health risks

Your pet's age will impact the cost of insurance, with older pets typically being more expensive to insure. Additionally, consider any pre-existing conditions your pet may have, as most insurance companies will not cover treatment for these. Knowing your pet's breed and specific health risks can also help you choose a plan that covers breed-specific health issues.

Decide on the type of coverage and add-ons

Pet insurance typically covers accidents and illnesses. However, you can also choose from accident-only plans or comprehensive plans that include wellness plans for routine care. Some common add-ons include coverage for exam fees, alternative therapies, dental treatments, and behavioural treatments.

Compare quotes and customise your plan

Compare quotes from different insurance providers, considering factors such as premium rates, deductibles, co-payments, and annual or lifetime limits. Customise your plan by choosing your deductible, reimbursement rate, and annual limit based on your budget and needs.

Look for additional benefits and good customer service

Some pet insurance policies offer additional benefits such as wellness coverage for routine care and telemedicine options. Additionally, look for a company with good customer service, including multiple contact options, quick response times, and an easy claims process.

Use comparison tools

Comparing pet insurance policies can be overwhelming, so using comparison tools and seeking advice from experts in the field can help you identify which features matter most based on your pet's specific needs.

Frequently asked questions