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Daniel T. Murray Blog: pets
View the latest blog posts from Daniel T. Murray.
THURSDAY, JULY 31, 2014
903 pet owners were surveyed and 44 percent say they have made formal or informal plans for their pets’ future care.
For one-fifth of those owners, according to the survey, “Pet heirs: Financial planning with pets in mind,” those plans are financial.
Pricing a pet’s life
The pet industry has more than tripled in 20 years from $17 billion in 1994 to an estimated $59 billion in 2014, according to the American Pet Products Association. The pet owners who took Securian’s survey in May 2014 provide evidence of that growth. When asked how much they would spend to save a pet’s life:
· 16 percent say they would spend $10,000 or more.
· 29 percent would spend $2,000 to $5,000.
Cost of care
When asked about ongoing maintenance and veterinary costs, respondents in the Securian survey indicated their expenses can be substantial:
· Nearly 60 percent spend up to $1,000 a year on food, grooming, toys, etc.
· Three-fourths spend up to $1,000 a year on veterinary bills.
· 18 percent say their largest single pet related expense was $2,000 or more.
These costs add up to many thousands of dollars over the years, especially for long-lived pets.
“If the owner suddenly dies or becomes disabled, the person who inherits the pet may not be financially prepared for the added expense of ongoing care or life-saving procedures,” said Michelle Hall, manager, Market Research, Securian Financial Group. “Our survey shows a significant percentage of pet owners make financial plans to ensure their pets will always be well cared for.”
Life insurance, annuities and cash
Nearly one-fifth of all respondents in Securian’s survey say they have financially planned ahead for their pets’ future care. When those respondents were asked to select all that apply:
· 38 percent said they added the pet’s future caregiver as a beneficiary to a life insurance policy.
· 35 percent added more coverage to their life policies.
· 13 percent purchased annuities naming the pet’s caregiver as the beneficiary.
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