Should You Buy Pet Life Insurance?

Most people are familiar with the concept of life insurance.  In return for paying a premium, an insurance company will pay a lump sum when the insured person dies.  This payout compensates the beneficiary of the policy for financial loss.  Life insurance also helps to cover costs associated with the funeral.

But did you know that you also can purchase life insurance for pet?  Although it might seem strange at first, pet life insurance can be a useful product for pet owners.  It helps to protect you against many costs associated with their pet dying.  These costs can include things like cremation or burial fees.

Pet Life Insurance

What is covered by pet life insurance?

It can be very difficult on a family when a pet dies.  That is why many people commemorate their pet with a casket and tombstone.  Some pet owners even give their pets a complete funeral!

As a result, the costs associated with a pet passing away can become large.  You can alleviate these costs by purchasing pet life insurance.

Pet life insurance policies can help you cover costs including:

  • Euthanasia costs
    The cost of putting your pet to sleep can range from $50 to $200 in Australia
  • Pet cremation
    Having your pet created can cost anywhere between $75 to $150
  • Purchasing an urn for your pet
    A nice urn for your pet’s ashes can costs hundreds of dollars.
  • Purchasing a burial plot
    You may decide to bury your pet in a pet cemetery, so they can be buried close to other animals.  Purchasing a plot can cost a few hundred dollars.
  • Purchasing a pet casket
    Caskets can cost anywhere between $100 to $500

Some pet insurance plans are designed to cover show pets, purebred animals, and working animals.  These policies have larger payouts to help you afford a replacement animal.  They are very useful for people who own working dogs or expensive breeds that cost thousands of dollars to replace.

A few pet health insurance policies have features similar to pet life insurance.  For example, the pet health insurance policy provided by PetPlan pays a $1,000 benefit if your pet dies.  Other policies have small payouts to help you pay for euthanasia.

What is not covered by pet life insurance?

Pet life insurance policies are designed to cover unexpected deaths after an accident of illness.  They have certain policy exemptions and coverage limitations to prevent the policies being used inappropriately.  Common policy exclusions include:

  • Pre-existing conditions
    In most cases, your pet will have to undergo a physical exam before you can purchase pet life insurance.  This is performed to identify any pre-existing conditions they have.
  • Hereditary diseases
    Many breeds of purebred animals are prone to developing hereditary diseases.  For example, German Shepherds often suffer from hip dysplasia.  Great Danes and Boxers have a hereditary pre-disposition to heart disease.  If your pet already has one of these hereditary conditions, they may not quality for insurance.
  • Deaths caused by old age
    Certain types of pet life insurance plans are not available for older pets.  This usually includes policies designed to replace working animals and show dogs.  The age limits can greatly vary depending on the breed of your pet.
  • Animal neglect
    Pet life insurance policies will only pay if your dog dies of natural causes.  If you were neglectful in your duties as a pet owner, the insurance company may reject your claim.

Should you get pet life insurance?

Your decision to purchase pet life insurance will depend on a few factors:

  • Do you own a working animal?
    Most working animals are highly trained and very valuable to a business.  They make a large contribution in the workplace and help their owners produce an income.  You will need to immediately replace them if they pass away.  Pet life insurance can help you with the cost of purchasing a replacement animal.
  • Do you own a show pet or a pet that is a rare breed?
    If you have a pedigree pet or a rare worth thousands of dollars, buying pet life insurance is recommended.
  • Will you be giving your pet a big send off?
    If you want to give your pet the best funeral possible, pet insurance can really help with the costs.

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