Reviewed by Dr. Fiona Lee
Pet insurance is growing increasingly popular. According to the North American Pet Health Insurance Association, there was an explosive 22.1% increase in total insured pets in the U.S. from 2021 to 2022 alone.1 More and more pet owners are realizing that pet insurance is a wise decision that can help them get treatment for their furry family members without breaking the bank.
Some pet owners are taking insurance a step further and getting life insurance for their pets in case of a premature death. But how does pet life insurance work? Pet insurance and pet life insurance are two very different policies, and life insurance isn’t right for everyone. Pet owners need to understand the difference so they can determine if getting an additional life insurance policy is worthwhile for their situation.
Pet life insurance doesn’t cover any medical expenses.3 Instead, it’s most beneficial for a person who may suffer a financial loss from the death of an animal, like someone with a show dog.2
Pet life insurance
Pet life insurance, often referred to by insurance carriers as animal mortality insurance, is a policy that pays pet owners a benefit if their pet dies.2 The benefit may help cover burial or cremation costs, along with other costs depending on the terms of the policy.3
Pet health insurance, in contrast, is meant to help cover the cost of medical expenses and treatments for illnesses and accidents. Some pet insurance policies also cover one end-of-life cost: euthanasia when recommended by a veterinarian. But they don’t cover other costs like cremations or burials.
What does pet life insurance cover?
Pet life insurance can vary depending on what policy you get, but in general, it may provide:
- A cash benefit after an unexpected pet death from a covered reason, like severe weather, fire, collisions, earthquakes, falling objects or explosions3
- A benefit after any pet death if you have a more expensive, full policy4
- Loss of pet from theft—this may be part of the policy or an add-on for which you can pay more3
The cash benefit that is paid out upon a pet’s death is typically used to cover cremation, burial or funeral costs.3 Some policies might even help pay for bereavement counseling.5 Some more expensive policies will even cover the cost of replacing your animal, along with “loss of use” (revenue lost during the time it takes to replace your pet). Sometimes revenue lost can be extensive, especially if a replacement animal requires a lot of training.6 The details, including exactly how much is paid, vary depending on your chosen policy.
Eligibility and requirements
Pet life insurance isn’t always available for everyone. The eligibility requirements can vary depending on who is offering the insurance. Some insurance carriers are picky about whom they’ll sell a pet life insurance policy to. They may only cover pets that produce income or are valuable for another reason, such as police dogs, show dogs and show cats, service dogs or prizewinning racehorses.4
When you apply, you may need documentation proving your pet meets the insurance carrier’s requirements. In addition, it may be tougher or more expensive to get a policy if your pet is older or has pre-existing conditions.2
How to choose the right pet life insurance
It’s a good idea to research different carriers and policies thoroughly before choosing the one that’s right for you. Check out the fine print so you understand the terms and any exclusions, along with the monthly premiums and the deductible you’ll have to meet before receiving a benefit.4
Typically, you can choose between two types of life insurance policies: limited mortality and full mortality.
Limited mortality policy
A limited mortality policy will only cover pet deaths that are caused by certain specified conditions.4 They typically won’t cover death by natural causes or illnesses.3 Covered causes might include:3
- Explosions
- Collisions
- Derailments while loading, unloading or traveling with your pet
- Falling objects
- Severe weather like a tornado or hail
- Earthquakes
- Floods
- Fire or smoke
- A bridge collapsing
Sometimes you can add additional “perils,” which can increase the premium cost, such as:3
- Animal attacks
- Accidental shooting
- Drowning
- Building collapse
It’s important to note that exactly what is covered under a limited mortality policy—and what’s available as an add-on—will vary depending on the insurance carrier and the policy.2 That’s why you should always read the fine print closely.
Full mortality policy
A full mortality policy will pay a benefit upon your pet’s death no matter what caused the death. Whether or not this includes a natural death or a pre-existing condition will depend on the individual policy’s terms.4
When is theft covered?
Some full mortality policies will already cover theft. If you’re getting a limited mortality policy, you might be able to pay more to add theft coverage. It’s important to read the fine print to know if theft is covered or not.3
Other options
Business owners, like farmers or zoo owners, might be able to obtain animal mortality insurance as part of their livestock insurance. Pet owners, on the other hand, will need to get animal mortality insurance as a stand-alone policy.2
Costs and premiums
Just as with pet insurance, you’ll need to pay a monthly premium if you want life insurance for your pet. Certain factors can result in more expensive premiums:
- A full mortality policy costs more than a limited mortality policy.4
- The more “perils” that are covered under a limited mortality policy, the more expensive the premium.4
- The lower the deductible, the higher the premium.4
- An older pet will cost more to insure.4
- A pet with health issues will cost more to insure.6 (And some carriers won’t cover any pre-existing conditions.)2
- A premium will be higher if it covers “loss of use” or replacement costs for a pet that is earning more revenue or requires extensive training to replace.6
The cost of pet life insurance varies widely, depending on the above factors. Sometimes annual costs can range from $250 to $900 or more, depending on the terms.7
Pet life insurance can be beneficial in many situations
Pet life insurance has a lot of advantages for pet owners who may lose valuable income or investments if their pet dies.3 A police dog who was trained extensively can be expensive and time-consuming to replace. A show dog earning a lot of money can cause a loss of income when the beloved pet passes.4
Knowing that the costs of cremation, burial and other expenses are covered can provide you with a much-needed source of comfort (along with financial relief) after losing a beloved furry family member. You’ll just need to look at your budget and your circumstances to know if pet life insurance is a good choice for your situation.
Pets Best can help keep your pet healthy
Whether life insurance is an option for your pet or not, investing in pet insurance is a great way to invest in your pet’s future and help protect your dog or cat from diseases and illnesses. At Pets Best we do not offer life insurance, but our dog insurance plans and cat insurance plans can be customized for your pet’s unique needs. In addition, Pets Best policyholders can speak to a veterinary expert anytime through a 24/7 Pet Helpline.
Sources/Citations
1. “State of the Industry Report: 2023 Highlights,” (5/2023), North American Pet Health Insurance Association, https://naphia.org/industry-data/, accessed January 12, 2024.
2. “Animal Mortality Insurance,” Mariah Bourne (8/2023), U.S. News & World Report, https://www.usnews.com/insurance/glossary/animal-mortality-insurance, accessed January 12, 2024.
3. “Life Insurance for Pets,” Elizabeth Rivelli (8/2023), Forbes Advisor, https://www.forbes.com/advisor/pet-insurance/pet-life-insurance/, accessed January 12, 2024.
4. “Pet Life Insurance Is a Thing. Do You Need It?” Kailey Hagen (11/2023), The Ascent, https://www.fool.com/the-ascent/insurance/pet/articles/pet-life-insurance-is-a-thing-do-you-need-it/, accessed January 12, 2024.
5. “Pet Insurance,” Massachusetts Division of Insurance, https://www.mass.gov/info-details/pet-insurance, accessed January 12, 2024.
6. “Animal Mortality Insurance: What It Is, How It Works, Example,” Jason Fernando (3/2022), Investopedia, https://www.investopedia.com/terms/a/animal-mortality-insurance.asp, accessed January 12, 2024.
7. “Can You Get Life Insurance for Your Pet?” Anna Baluch (1/2023), Insurify, https://insurify.com/pet-insurance/knowledge/pet-life-insurance/, accessed January 12, 2024.
