Life insurance for pets: What is it and how does it work?
Key takeaways
- Animal mortality insurance differs from health insurance and pays the owner a benefit in the event of the animal’s death, theft or disability.
- This type of insurance is often reserved for high-value or income-earning pets or livestock.
- The cause of death will be considered for animal mortality insurance payouts as some policies have specific criteria for payouts.
When considering life insurance, we aim to protect our family if the unexpected occurs. But have you considered the animals that mean so much to us — whether as beloved companions or vital contributors to our livelihood?
Pet life insurance, more formally known as animal mortality insurance, is a form of protection designed for high-value and working animals. Losing livestock or a valuable service animal can be an emotional blow with significant financial consequences, especially if that animal plays a critical role in your household or business.
Animal mortality insurance is unlike human life insurance, which typically only considers age, health and lifestyle. Pet life insurance has strict qualifications, requiring your insured animal to be considered an investment of high value.
Understanding how animal life insurance works can help you decide whether it’s a worthwhile investment for you and your furry (or hooved!) family member.
How life insurance for pets works
Pet life insurance provides financial coverage for pets in case of disability, injury or death, depending on the policy. 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.
Qualifying for animal mortality insurance depends on the animal’s breed, age and health status. You may need to provide value documentation justifying the animal’s significance. Most animal mortality insurers request a veterinary certificate of examination to prove the animal’s health before your policy is approved.
In the event of a loss or fatality, you must submit a claim and provide a death certificate from a veterinarian to receive the death benefit.
Pet life insurance companies
Pet life insurance is a niche offering, so only a handful of companies provide coverage. Here are the five pet life insurance providers:
- Ark Agency Animal Insurance: Offers mortality insurance for income-earning dogs, horses, cattle, livestock and exotic animals. The company provides limited or full mortality plans, depending on your needs.
- Amwins: Domesticated animal and horse show participants can find morality coverage through Amwins.
- Marnitz & Associates: Offers horse and canine mortality insurance. Marnitz is a favored provider for its affordable rates and customized coverage plans.
- Sanger Insurance: Offers cattle, horse and livestock, and canine mortality insurance. It also provides coverage for major medical expenses.
- The Hartford: Offers mortality insurance for specialized livestock, equine and canine workers. Fatalities of commercial livestock and high-value animals are covered during transit or on the owner’s premises. The company offers many optional add-ons like carcass removal, animal transport vehicle substitution, power interruption coverage and more.
What pet life insurance covers
While investigating the best pet life insurance provider for your animals, it’s crucial to look for transparency regarding what is and is not covered. The following are some coverage options you may come across:
- Animal theft policies
- Full animal mortality coverage
- Limited animal mortality coverage
- Livestock or equine transit coverage
- Livestock feeding and growing facility coverage
- Long-term disability coverage
- Loss of use (revenue lost during the gap it takes to replace your pet)
- Optional medical endorsements
- Major medical or veterinary services
Common or additional perils and causes of death covered by pet life insurance include:
- Accidental shooting or drowning (except by the insured or employees)
- Accidents during transit, including loading or unloading
- Bridges, buildings or culverts collapse
- Death due to fire, flood, tornado, earthquake, lightning or other weather event
- Disability
- Disease
- Electrocution
- Explosions
- Illness related to a sustained injury
- Theft of animal without a death certificate
- Wild animal or predator attack
Certain animal breeds may be excluded from coverage due to hereditary or congenital diseases, and many policies exclude coverage for death due to natural causes or illnesses.
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 in the form of annual premiums, just as you would pay for your pet’s health insurance. Several factors affect the premium cost for animal mortality insurance:
- Age of animal
- Breed
- Health and medical history
- List of covered perils
- Location
- Policy choice
- Purchase price of the animal
- Species of animal
- Use of animal (service, show, livestock, sporting, etc.)
- Value of animal (e.g., the animal requires extensive training or earns extensive revenue)
Coverage and costs can vary between insurers, so it’s best to get several animal mortality insurance quotes to ensure you get the best value for your investment.
Pros and cons of pet life insurance
Getting animal mortality insurance has its perks, but it’s not for all animals or domestic pets. Consider the following points to decide whether this is a worthwhile expense:
Pros
- Assistance with replacement costs: Working animals and service dogs require extensive training, which costs tens of thousands of dollars. Pet life insurance can 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 to suit different situations. 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
- 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, new illnesses, natural causes, intentional harm or high-risk activity.
- High annual premiums: With premiums of $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, police dogs and zoo animals. Unless your family dog or cat is a show animal, used for breeding or a highly-trained service animal, the chances of finding suitable pet life insurance may be slim.
How to decide if pet life insurance is right for you
Deciding whether to purchase animal mortality insurance comes down to your financial situation and the potential financial impact of losing the animal.
Because pet life insurance premiums can reach 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 offer financial support should the unthinkable occur.
However, pet health insurance may be a better option if you have a regular pet, with add-ons that cover end-of-life benefits like euthanasia, cremation, burial and even grief counseling.
The bottom line
If your financial stability depends on your cattle, service animal or a high-value horse, animal mortality insurance could be a smart safeguard. While grieving the loss of your animal, you can rest assured expenses like the possible replacement of the animal are covered.
Even if mortality insurance isn’t the right fit, starting with the best pet health coverage is a practical first step to protecting your pet and your wallet.
