Do You Need Life Insurance if You Only Have Pets and Not Human Dependents?

Owning a pet can be an expensive prospect. In 2023, Rover found that dog owners spent up to $3,555 a year on essential costs, while cat owners spent up to $1,600.

Buying pet insurance is a good way to help ensure you're able to cover your animal's health expenses. But what if you were to pass away? Who would care for your animal then?

It's a scary thing to think about, which is why it's a good idea to put a plan in place. You may also want to set some money aside so that whoever takes over your animal's care has the means to do so, at least initially.

But should you also consider a life insurance policy to benefit your pet? You may want to.

It's all about protection

If you have people in your life -- say, a spouse, siblings, or children -- who rely on you financially, then buying life insurance is a good way to protect them in the event of your passing. Similarly, you may want to put coverage in place so your pet is protected financially in the event of your passing.

If you have human dependents, you can always pad your life insurance policy's benefit to account for extra money for your pet's care. But what if you don't have human dependents?

In that case, life insurance could still make sense. However, putting life insurance in place for a pet is trickier than doing so for a human. You can't name an animal as your policy's beneficiary.

One thing you can do, however, is designate a trusted person as the beneficiary of your life insurance policy with express instructions that the money is to be used for your pet's care. You may want to enlist the help of an attorney to put such an arrangement in place, but it's possible.

Another thing you could potentially do is set up a trust for your pet and arrange for proceeds from your life insurance policy to go into that trust. But again, you'll still need some type of human involvement. Someone will need to make sure the funds are used to care for your pet -- and that your pet actually gets the care they need. This is why for a situation like this, hiring an attorney could be a smart move.

You don't necessarily need a lawyer to put life insurance in place for family members. But when you're talking about an animal, things get more complicated.

Is life insurance the best bet for your pet?

Because you're paying a premium for life insurance that's coming out of your pocket each year and pets only have a limited lifespan, instead of buying life insurance, you may want to consider putting a sum of money aside in savings. Then, in your will, you can indicate that the money is to be used for your pet's care.

Once again, any time you're talking about estate planning matters, like writing a will, it's smart to get an attorney involved. That way, you get the peace of mind that comes with knowing you're taking the proper steps to ensure your pet is cared for.