Life insurance for pets: What is it and how does it work?
Many families purchase life insurance for loved ones. But what about life insurance for your pet?
The loss of a pet can be devastating, emotionally and financially. Pet life insurance speaks to the growing recognition of pets as invaluable family members and, in some cases, income contributors whose departure can cause financial strain.
Human life insurance plans typically base coverage on age and health issues, whereas life insurance for pets has more strict qualifications. To decide if pet insurance is worth it, you need to know how it works and its benefits.
How life insurance for pets works
Pet life insurance, or 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.
That’s not to say getting life insurance for a family pet is impossible. Pet health insurance often has death benefit add-ons that cover end-of-life costs like euthanasia, burial and even grief counseling.
When acquiring life insurance for your pet, you will fill out an application to provide details about your pet’s breed, age and health status. Should your pet pass away due to a covered event or peril, 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.
Pet life insurance is a niche offering, so only a handful of companies provide coverage. Here are the four pet life insurance providers:
- The Hartford: Offers mortality insurance for livestock, horses and police and service dogs. You can also get a regular pet insurance plan through this company.
- Ark Agency Animal Insurance: Offers mortality insurance for dogs, horses, cattle, livestock and exotic animals.
- Sanger Insurance: Offers cattle, horse and livestock and canine mortality insurance.
- Marnitz & Associates: Offers horse and canine mortality insurance.
What pet life insurance covers
Once you find a company that offers pet life insurance, it’s crucial to look for transparency in terms of what is and is not covered. Several companies provide:
- Animal theft policies
- Full animal mortality coverage
- Limited animal mortality coverage
- 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 event
- Disability
- Disease
- Electrocution
- Illness related to a sustained injury
- Wild animal or predator attack
As with most insurances, coverage will depend on age, breed and pre-existing conditions. Certain dog breeds may be excluded from coverage due to hereditary or congenital diseases, and many policies exclude death from natural causes.
By researching each plan and comparing them to other pet insurance policies, you can make an informed decision and feel confident in your choice.
Pet life insurance costs
Pet life insurance costs come down to annual premiums. The premium price is determined by several factors, such as:
- Age
- Breed
- Health
- Purchase price
- Species of animal
- Use of animal (service, show, etc.)
For instance, a representative at Ark Agency said their mortality insurance policies could be as low as $250 a year for a limited mortality coverage policy or $1,750 or more for a full-coverage mortality policy.
The agent further explained that the premium is based on the value of the animal’s purchase price, and then health, age and use case come into play. For service, show or working dogs, Ark only considers a percentage of the training costs when deciding the pet’s value.
Coverage and costs can vary between insurers, so it’s best to get several pet life insurance quotes to ensure you get the best value for your investment.
Pros and cons of pet life insurance
Getting pet life insurance for family dogs and cats may be worthwhile, but it has advantages and disadvantages.
Pros of pet life insurance
- Assistance with replacement costs: Working animals and service dogs require extensive training, costing tens of thousands of dollars. Pet life insurance can help cover the cost of buying and training a new animal.
- Coverage for theft of an animal: Expensive dog and cat breeds can be a target for thieves. Some pet life insurance policies provide compensation if a lost or stolen pet is not recovered.
- Financial protection for sudden death: If you’ve bought a high-value breed, paid for service dog training or rely on your pet for income, receiving a death benefit can help mitigate the costs in the event of an unexpected death.
- Flexible options based on need: Many pet life insurance providers offer various levels of coverage based on different needs. For example, your service dog may work in hazardous conditions, so you’ll want coverage in case of death due to mother nature, accidental shooting or work-related travel.
Cons of pet life insurance
- Coverage limitations and exclusions: Insurance coverage always has exclusions, but the list of what’s not covered can be longer than what is covered. These limitations often include death due to undisclosed pre-existing conditions, age, natural causes, intentional harm or high-risk activity.
- High annual premiums: With premiums as high as $1,000 or more a year, the annual costs may outweigh the benefits, especially if the pet lives a long and healthy life without ever needing the coverage. An alternative option would be a savings account to cover unexpected vet bills, illness or end-of-life situations.
- Limited availability: Insurance is regulated at the state level, so requirements or restrictions can vary from state to state. The demand for pet life insurance may be low, or licensing requirements may be high in certain states, making it less profitable for insurers.
- Only available for high-value animals: Pet life insurance is typically available for animals with a high value, such as livestock, horses and zoo animals. Unless your family dog or cat is a show animal, used for breeding or is a highly-trained service animal, the chances of finding a suitable pet life insurance may be slim.
How to decide if pet life insurance is right for you
Deciding whether to purchase pet life insurance can depend on a few factors, such as your financial situation, your pet’s age and health, the length of time you’ll need coverage and the potential impact of losing the animal to anything other than natural causes.
Because pet life insurance premiums can top out in the thousands, take the time to research the company’s coverage options, ratings and even customer reviews. If the emotional and financial peace of mind outweighs pricey premiums, pet life insurance can help give you peace of mind should the unthinkable occur.
The bottom line
In 2023, pet owners spent $4,800 on food, treats, toys and vet visits. This doesn’t include unexpected medical bills, the cost of purchasing a specialty breed or money to train a show or service animal. Pet life insurance is becoming an option worth considering, especially if you rely on your animal for income or service work.
The next step in obtaining pet life insurance is to consult an insurance provider who can assess your situation and provide an accurate quote based on your pet and needs.
Frequently asked questions
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You can get pet life insurance for dogs and cats, but it’s usually reserved for those who earn income, like show or breeding animals. It’s also available for pets considered high-value, such as service animals or working pets.For family pets, the costs may outweigh the benefits.
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Yes. You can purchase full mortality policies that pay a benefit due to a natural death.
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Annual premiums can cost between $250 and $900 or higher, depending on the type of animal, age, breed and extent of coverage.
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Yes. Some pet health insurance providers, like Lemonade, have end-of-life add-on fees that cover euthanasia, cremation, urns and burials. These often cost much less than pet life insurance premiums.
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