What do you think about when you hear “life insurance”? You probably think about purchasing a policy so you can make sure that your spouse, children, or other loved ones can be financially secure after you are gone. But maybe you have another idea of who you’d like your life insurance money to take care of: perhaps you have a beloved pet you’d want taken care of in the event of your death. While pets can’t inherit money or possessions, some life insurance companies will offer you the option of setting up a trust to ensure that your pet is cared for after you’re gone.
Do You Need A Pet Trust?
If you have a pet that is expected to outlive you, you will need to make arrangements to make sure that it is taken care of after you’re gone. After all, pets are expensive: food, vet visits, etc can cost thousands of dollars a year, which could be a burden for your family or any person who will take on the responsibility of caring for your pet. If you think it will be difficult for your family members, or other designated caregiver, to take on these expenses, you should consider talking to a life insurance company about setting up a trust that will pay out benefits to them for the care of your pet.
Types of Pet Trusts
There are three different kinds of pet trusts that you can choose from, each with its own limits and considerations:
- Traditional Pet Trust– With this type of trust, you will name a caregiver for your pet, and give specific instructions on how to take care of your pet. The trust will also designate a separate trustee who will be responsible for managing the money in the trust.
- Statutory Pet Trust- With this kind of trust, you will not have the option to give specific instructions for how you want your pet to be cared for. Instead, there will be a designated lump sum of money set aside for your pet that the caregiver will use to care for it, as well as a second person to oversee the funds.
- Pet Protection Agreement- This is a legally binding contract that is signed by you and your pet’s future caregiver, but it is not ideal for transferring large sums of money.
Finding An Affordable Policy
Your pet is your companion and best friend, and losing you will be hard enough on them. If you want to make sure your pet is taken care of when you pass, you can consider a life insurance policy that designates someone to take care of your pet, and leaves them the money necessary to do so.
There are many great affordable life insurance options to choose from that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.