SkyTails: Pet Savings Accounts 101

Pet Savings Accounts & Rainbow Bridgge Fund

Pet savings accounts offer pet parents a powerful tool for managing their furry friend's expenses. Unlike pet insurance, where control rests with the insurance company and premiums steadily climb each year, a pet savings account puts you in the driver's seat. The funds are yours, accessible at any time for any pet-related need, from routine checkups to unexpected emergencies. Moreover, the power of compounding allows your savings to grow steadily over time, accumulating interest and building a financial safety net for your pet's future. While pet insurance policies often come with limitations, exclusions, and the risk of cancellation just when you need them most, a dedicated savings account provides consistent, reliable access to funds. And for those with properly classified service animals or working dogs, there may even be tax advantages associated with their care expenses, further enhancing the benefits of a pet savings account.

Feature	Pet Savings Account	Pet Insurance
How it works	Deposit money regularly.	Pay a monthly premium.
Funding	Your savings	Insurance company
Cost	Based on savings habits	Monthly premiums, deductibles, co-pays
Coverage	Any pet-related expense	Eligible veterinary expenses
Flexibility	High - you control spending	Limited by policy terms
Pre-existing conditions	No restrictions	May be excluded or limited
Waiting periods	None	May apply
Claims process	No claims process	Required
Taxes	Interest earned is usually taxable.	Not applicable
Compounding Interest	Compounded return based on the investments	Not applicable
Pros	Flexibility, control, potential interest, no restrictions	Peace of mind, coverage for large expenses, predictable cost
Cons	NA	Monthly premiums, deductibles, limits, exclusions, claims process
Best for	Protection against large unexpected vet bills especially at the pet end of life	Protection against large, unexpected vet bills

Emma Riedlinger

Creative Director

SkyTails