Purchasing a life insurance cover for you or your spouse makes sense because your family will be financially protected against tragedies. Some people even go ahead and purchase life insurance covers for their children. You can read the full review of different plans here.
Pets are part of the family, and this explains why you buy dog food for your pet as you buy your food. Therefore, does it make sense to buy life insurance for pets? Are you likely to incur losses when your family pet dies?
Many people would say that it does make sense to purchase life insurance policies for pets. However, some people purchase insurance covers for their pets. In the eyes of the insurance companies, pets have their own values on paper.
The value of pets
Although pets have incalculable value in the family because they do not have income potential, their value is based on the cost of buying them and replacing similar breeds in case of death.
Rare breeds, famous pets, and show dogs have accessed value that is greater than their replacement or purchase value.
You stand to incur a loss if a pet dies because you will have to pay for the funeral costs. Such costs include cremation cost, burial plot in the cemetery, and the pet’s casket.
Limitations of life insurance for pets
Life insurance for pets differs from pet health insurance because it is designed to cover unexpected deaths. The insurer compensates the pet owner with the amount equivalent to the pet’s assessed value, purchase cost, or replacement cost.
However, there is some exclusion because not all deaths are covered. Some of the exceptions include death due to hereditary diseases, old age, and preexisting conditions. Therefore, this cover is limited to accidental deaths or deaths due to sudden illness.
Life insurance for dogs and cats
You can purchase life insurance for your dog or cat. Famous dog breeds such as show dogs are the favorites for insurance companies. Such dogs are popular on the internet, and they stand a higher chance of generating income for the owners.
Cat owners rarely purchase life insurance for their cats. The lifespan of cats is longer than that of the dogs. Therefore, their insurance policies have longer coverage periods.
Is life insurance for pets necessary?
Generally, pet owners only incur food and healthcare costs during the lifetime of their pets. Therefore, the death of the pets will not cause heavy losses because they do not generate income.
Therefore, it does not make sense to use lots of money purchasing life insurance for pets. Instead, you should keep that money to cater for the funeral cost of the pets.
Only a few families benefit from pet life insurance. Therefore, it makes more sense if you put the money you would have used to purchase the life insurance in a savings account.
Pets are a part of the family, and most people value pets. Insurance companies have, therefore, introduced life insurance covers for pets to cover the losses that owners incur when they die. However, life insurance coverage does not make financial sense.