Can life insurance money be left for your pets?
Dec 02 2016

Can life insurance money be left for your pets?


Can life insurance money be left for your pets?

Who’s the #1 person in your life?  Is it your spouse, your kids, your cat, your dog, or your horse?  Who would you want to take care of if something unexpected happened to you? People that buy life Insurance do so because they love other people or their pets. They want to protect those they love because life demands money and your loved one's bills don't stop. During an emergency if something has happened to you and you are no longer able to be there for those you love, whether two legged or four-legged, life insurance can provide much needed cash and assistance for your loved ones.

Perhaps you are single and don’t see a need for life insurance? Do you have a pet you love that loves you back unconditionally? Have you thought about who will take care of your pet in the event something should happen to you?  It could happen before you know it. Even if you become ill or injured, you need a plan so your pets will be cared for, just in case! In fact, every single year in our country around 500,000 pets are killed or abandoned because something happened to their owners and there was no plan in place for their beloved pets!

You may assume you have plenty of assets.  But, are those assets liquid and will they be available instantly when needed?  Will these assets need to be sold to cover expenses? How long will that take? Will your assets need to go through Probate Court? While all of this time-consuming, expensive and annoying processes take place those you love, especial your pets who are who are counting on you, need money and assistance fast.

Life Insurance creates cash at death that goes directly to the beneficiary you designate, normally tax free and without going through Probate Court. In the case of your pets, life insurance can be even more important because your pets are 100% dependent on you for their daily needs and ongoing care. Even if you are leaving your pets to a friend or family member, the extra money life insurance can provide quickly will ensure your pet is not a financial burden. Furthermore, you can show you appreciate your friends or loved ones whom you've designated to care for your pets by providing the extra money needed for your pet's ongoing benefit.

Once you decide to protect your pet, the process of getting life insurance can be simple and painless. In fact, life insurance can be incredibly affordable. First consider who will care for your pet, then estimate your annual expenses per pet, plus any extra money that will be needed for the new owner to accommodate your pet. Next, get a written, legally valid plan for your pet's future. Either go to a qualified estate planning attorney or get a PetWill Pet Trust from MyPetWill.com at a one-time only fee of $15.95.

Once that is in place, you can choose the right life insurance policy that upon your passing will provide the money necessary to care of your beloved pet. Rather than simply putting money aside, life insurance can be a better solution. A life insurance benefit costs pennies on the dollar.  If paid to a Pet Trust, the money is only to be used for the specific purpose of caring for your pet(s), gives you more control, in many states can be protected from creditors and is normally income tax free.

So talk to your life insurance broker and discuss your options. Not only can it put your mind at ease but it can save your pet's life with much needed money when it matters most!

PetWill wishes to thank contributing writers and life insurance agents, John and Polly Costa from Planning4Pets.