PET LIFE INSURANCE: What Is It & How Does It Work?

Like human life insurance, pet life insurance provides a death benefit to the policyholder upon the passing of the insured dog, cat, or other pet. The average cost of pet life insurance is between $250 and $900 per year, and if you have questions about your pet insurance policy, including the claims process or payouts, you should contact your insurance company directly.

Pet Life Insurance

Most dog and cat owners do not need pet life insurance, which is also called mortality and theft insurance. They only need it for highly valued pets, breeding dogs, racehorses, or show dogs.

There are two primary types of pet insurance policies: full mortality, which pays out if your pet dies for any reason, and limited mortality, which only pays out if your pet dies because of an insured event, like a natural disaster.

Insurers only offer this coverage for pets that are valuable to their policyholders in some way, such as a police dog that provides a necessary service and would be expensive to replace.

What does Pet Life Insurance Cover?

No matter what happens to your pet, a full mortality and theft policy will compensate you for its loss. Theft insurance is generally included.

It is important to read the fine print of any insurance policy you are considering purchasing, but it’s not uncommon for “limited mortality” policies to cover the loss of an insured animal only if it is the result of one of the specified causes of death (or “peril”), such as those listed below.

A windstorm, cyclone, tornado or hail.
Aircraft and falling objects.
An explosion
Earthquakes or floods.
Fire, lightning, or smoke
collapses of culverts or bridges.

A policy with limited mortality may allow you to include additional “perils” like:

Accidental shooting
Collapse of a building.
Drowning
Theft of the animal
Transit accidents
Predator attacks
Electrocutions

What does Pet Life Insurance not Cover?

Any cause of death not specifically covered by the policy is not considered “limited mortality.” A common exclusion is coverage for deaths caused by illness. In most cases, insurance will not pay out if the policyholder dies of old age or a naturally occurring illness.

Pet Life Insurance Limitations

Pre-existing conditions: Before providing a policy, insurance companies need a veterinarian to evaluate the pet’s health. Coverage might not be available to you if your pet already has a serious illness.
Genetic disorders: Dog life insurance is unlikely to cover deaths resulting from hereditary disorders, as certain purebred dogs are predisposed to major illnesses and health issues.
Age: Most pet life insurance plans only provide coverage for a certain amount of time, during which your dog is less likely to suffer an advanced age-related illness.

How does Pet Life Insurance Work?

Dog life insurance, also known as mortality and theft insurance, compensates the dog’s owner for the loss of a companion animal, replaces lost income, and pays for burial expenses. In legal terms, your dog is considered personal property; however, renters‘ or homeowners’ insurance typically does not cover the value of pets. Life insurance for pets functions in much the same way as it does for humans. If the animal passes away, the life insurance will provide a death benefit. In most cases, the money is used to cover the costs of the pet’s cremation or funeral, or it is used to make up for lost income. Pet insurance policies typically cover theft.

Pet Life Insurance Cost

Several factors, including the animal’s species, breed, and age, affect the final cost of a life insurance policy for a pet. The cost of a pet’s life insurance policy can range widely, just like that of any other type of insurance. The age, breed, and species of the pet matter greatly. It costs more to insure an older pet, and some insurers will not cover pets with serious health problems at all.

The average cost is between $250 and $900 per year, so if your dog lives for ten years, you will spend $90,000. Dogs of different breeds, ages, living situations, and geographic locations will have different monthly premium costs, deductibles, and benefits. Bundling your pet’s health and life insurance policies with the same insurer could save you money.

Factors Affecting the Cost of Pet Life Insurance

Younger animals, like humans, tend to have lower premiums when purchasing life insurance. The cost of your pet’s life insurance policy could go up if it has a history of health problems. It is also possible that the pet will not be eligible for a policy due to its health.

The cost of pet life insurance increases in proportion to the pet’s value. Some exceptionally pricey pets are also more likely to be stolen, which can raise their annual premiums for life insurance.

Besides these things about the pet, there are also things about the policy that will affect the cost. Choosing the right coverage limit and deductible will have an impact on your premium. Your insurance rate will go down if you raise your deductible.

Standard premiums and deductibles apply to these plans. Choosing a higher deductible can reduce the cost of your monthly premium. This means that you will have to pay more if you need to make a claim, though.

To find out how much pet life insurance costs, you need to get quotes from different companies and compare what they have to offer. However, these plans usually cost a great deal of cash. Some could cost as much as $900 a year.

Best Pet Life Insurance

The major life and pet insurers don’t offer pet life insurance. Those interested in this coverage will have to seek out specialty insurers. Some companies that offer these policies include:

#1. The Hartford

The Hartford offers specialized livestock, equine, and animal mortality insurance to livestock owners and businesses. They also offer insurance coverage for horses, hogs, poultry, hatcheries, cattle, police and service dogs, and more.

The Hartford offers the following types of mortality insurance to help you safeguard your investment in more valuable animals: police and service dogs, bucking bulls, and show or breeding cattle and swine.

Animal Mortality Coverage protects you financially if an animal dies because of an accident, illness, injury, or disease that is covered. There is also theft coverage.
The limited coverage covers animal deaths from fire, lightning, windstorm, hail, collision or upset in transit, accidental shooting, drowning, and theft.

#2. Ark International Group

The full mortality policy that Ark Insurance Group offers protects policyholders from financial loss if their insured dog passes away due to natural or unintentional causes. It also comes with proven theft coverage. If you take your dog to any of the 50 states or Canada, they will be covered.

Your dog needs to be physically healthy to participate. A current certificate of good health from the vet is typically required. There may be limits on the value and age. An endorsement can be added to a full mortality policy that provides coverage for the temporary air and ground transportation of animals. Ark’s commonly insured perils include:

Basic Perils

Collapse of bridges and culverts;
Earthquake and/or floods;
Windstorm, cyclone, tornado, hail;
Explosion and aircraft and objects falling

Additional or Optional Perils

Accidental Shooting
Drowning;
Attack by dogs or wild animals;
Collapse of buildings; and
Theft

Get in touch with a representative at Ark Agency by phone or email to learn about premium estimates, coverage specifics, and eligibility criteria. Rates and terms of coverage can vary because they partner with multiple insurers.

#3. Amwins

Owners, showers, associations, and their affiliates can rely on them for the specialized insurance products they offer to safeguard against financial loss due to covered accidents, injuries, diseases, and even theft. Since 1980, Equisure, which is part of Amwins Underwriting, has created special insurance plans for people who own horses and dogs.

Amwins provides life insurance for pets, which covers things like loss of use, major medical expenses, emergency colic surgery, and even theft. Among the eligible animal species are animals of the equine species, including mules and miniature horses, but not horses older than 17 years or worth less than $2,500. Amwins is available in all U.S. states with a minimum premium of $250.

#4. Sanger Insurance

Higher-value animals like police and service dogs, bucking bulls, and show or breeding cattle and swine can get life insurance from Sanger Insurance. This type of insurance is also known as mortality and theft insurance. Their coverage includes the following:

Animal Mortality Coverage: Helps defray expenses in the event of the animal’s death due to an accident, injury, illness, or disease for which coverage is provided. There is also protection against theft.
Animal Mortality Limited Coverage: This covers fatalities caused by fire, lightning, windstorm, hail, collision or upset in transit, accidental shooting, drowning, and more. Includes theft coverage.
Major Medical Expense Insurance (Optional): This insurance can be added to Animal Mortality Insurance as an add-on. The insurance helps pay for the medical and surgical costs that come up because of an accident, illness, disease, or injury that is covered.

Word of caution: If you google “animal mortality insurance,” you will find more options. The results of a search for “pet life insurance” could return results for pet health insurance.

Pet Life Insurance Payout

The amount of money the insurance company pays the policyholder back for allowable expenses associated with their pet’s veterinarian care is known as a pet insurance payout. The payout is the amount your pet insurance company agrees to pay after reviewing your claim and finding it to be valid according to the terms and conditions of your policy.

To know how much you can expect to be reimbursed and what kinds of costs are covered, you should read over the policy’s terms and conditions, especially the reimbursement percentage, deductible, and coverage limits. If you have questions about your pet insurance policy, including the claims process or payouts, you should contact your insurance company directly.

Is there such a thing as Pet Life Insurance?

Life insurance for your pet can help pay for their final care and burial. This option might partially offset the high cost of burying your pet. It could also make up for the potential loss of future earnings due to the loss of your pet.

Can I make my Dog my Life Insurance Beneficiary?

Because pets do not have the same legal rights as humans, they cannot be named as direct beneficiaries of life insurance policies. The policyholder may instead designate a trust established for the benefit of the pet to receive the death benefit. The pet’s owner may also designate the pet’s guardian as the beneficiary and stipulate the guardian’s use of the funds.

Does Pet Insurance Pay if a Pet Dies?

Life insurance for dogs allows you to receive financial compensation equal to the value of your pet in the event of their untimely demise. Usually, this will depend on how much your dog costs to buy, how much it would cost to replace, or how much it is worth. Some insurance companies will also pay for the costs of euthanasia, cremation, or burial, but the rates will be higher.

What is Farewell Cover Pet Insurance?

Some insurance companies call this “farewell cover” or “death of pet cover.” It pays out money if your pet dies in an accident, from illness, or because you put them down.

How much does Pet Life Insurance Cost?

Pet life insurance costs depend on your pet’s age, breed, and where you live, among other things. The average annual premium for a small pet could be $250, while the average annual premium for a large, valuable pet could be $900.

When Should I Consider Buying Life Insurance for My Pet?

It is best to get life insurance for your dog or cat if they are very expensive pets, and it is even more important if they make money by breeding or appearing in public. If not, you probably will not get back the high cost of the life insurance policy on your pet.

Is Life Insurance for Pets worth it?

Life insurance for your pet is only a good idea if you have a valuable animal or one that brings in money for you. Getting pet life insurance can be a good idea if you would lose a lot of money if the animal died or was stolen.

Conclusion

Get in touch with an insurance agent or broker who focuses on policies for pets. You can get advice on whether you should get a policy that covers all possible deaths or one that has restrictions, and on the types of deaths that each policy covers. Pet owners should seriously consider investing in a pet health insurance policy to cover any unforeseen medical expenses. These are less expensive and more accessible, particularly for those who choose an accident-only policy. Looking for pet insurance quotes online is pretty simple, and most companies let pet owners buy a policy in just a few minutes.