Pet ownership in the U.S. has reached historic highs, and so have the costs associated with caring for pets. Today, nearly two-thirds of U.S. households own a pet, and** 97% of pet owners consider their pets part of the family.**

At the same time, rising veterinary costs, food prices, and preventive care expenses are putting increasing financial pressure on pet parents.

These realities are reshaping employee expectations. In Pet Benefit Solutions’ 2025 Benefits Survey Report, 85% of employees said they want pet benefits included in their voluntary benefits package, yet 64% currently receive no pet-related benefits at all.

That gap represents a clear opportunity for employers, brokers, and HR leaders to respond with more thoughtful, flexible offerings. That’s why customization is the difference between a benefit that employees ignore and one they actively value.

Why Customization Matters in Pet Benefits

Pet care costs have become a top concern for working pet parents. The same survey reveals that 40% of respondents said veterinary care costs were their biggest financial worry, with pet food expenses close behind.

On top of straining household budgets, these costs affect employee stress, focus, and engagement at work. It makes complete sense that they’re asking for support across the full spectrum of pet ownership – routine care, wellness, products, and peace of mind. 

This is especially true for Millennials and Gen Z, who tend to delay traditional milestones like homeownership or having children while investing deeply in their pets.

Customizing pet insurance and related pet benefits allows employers to meet these expectations without increasing employer costs. Most voluntary pet benefits are 100% employee-paid and no-cost-to-offer, making them a low-risk, high-impact addition to a broader benefits strategy.

Pet Parents Aren’t All the Same

Just as human healthcare needs vary, so do the needs of pet-owning employees. Factors such as the age of the pet, number of pets, type of animal, and household budget all influence what kind of pet benefit will be most meaningful.

Some employees want robust protection against large, unexpected vet bills. Others care more about predictable savings on routine care or pet products. Many want both, but at different price points.

Understanding these differences is the foundation of a strong pet benefits strategy.

The Three Core Types of Voluntary Pet Benefits

A well-designed offering typically includes three complementary benefit types, each serving a distinct purpose.

1. Traditional Pet Insurance

Pet insurance is designed to help cover accident and illness expenses, including diagnostics, surgeries, and emergency care. It’s particularly valuable for:

• Pet parents of young dogs and cats, where enrolling early helps avoid exclusions for pre-existing condition
• Employees seeking protection from large, unexpected vet bills
• Households with higher risk tolerance but long-term planning in mind

Pet insurance works best when employees understand that it operates on a reimbursement model and that premiums and deductibles vary by pet age, breed, and coverage level. When positioned correctly, it provides financial security and peace of mind, two factors strongly linked to employee engagement and retention.

2. Pet Wellness Plans

Wellness plans focus on routine and preventive care, such as:

• Annual exams
• Vaccinations
• Dental cleanings
• Flea, tick, and heartworm prevention

These plans appeal to pet parents who want predictable costs and are proactive about their pets’ health. They’re especially popular among:

• Owners of older pets, who may face higher insurance premiums
• Budget-conscious employees who prioritize preventive care
• Pet parents who want immediate, tangible value

Because wellness plans don’t rely on deductibles, they’re often easier for employees to understand and use consistently. 

Wellness plans are usually offered in one of two ways: as an add-on to a pet insurance policy, or as a standalone, flat-rate plan that can be purchased separately from insurance. 

3. Pet Discount Plans

Pet discount plans provide instant savings on a wide range of pet-related expenses, including:

• Veterinary services
• Prescriptions
• Preventatives (like flea and tick medications)
• Food and treats
• Toys and supplies

These plans are particularly valuable for:

• Multi-pet households, where costs add up quickly
• Employees with exotic pets that may not qualify for traditional insurance
• Pet parents who want to save on more than just vet care

Discount plans are also among the most accessible options, with lower monthly costs and no claims process.

Matching Pet Benefits to Different Employee Needs

Pet Parents of Young Pets

Employees with young cats or dogs often benefit most from accident and illness insurance, especially when paired with optional wellness coverage. Early enrollment helps lock in coverage before health conditions develop and spreads costs out over time.

Pet Parents of Older Pets

Older pets typically require more frequent care, and insurance premiums can be higher. For these employees, wellness plans and discount plans often provide better value by reducing routine expenses and offering predictable savings.

Multi-Pet Households

For employees with multiple pets, flexibility matters. Discount plans and bundled offerings help control costs across several animals, while insurance can be selectively applied to higher-risk pets.

Exotic Pet Owners

Birds, reptiles, fish, horses, and other exotic pets are often excluded from traditional insurance. Discount plans and wellness programs fill this gap, offering savings and access to care that would otherwise be entirely out of pocket.

Pet Parents Focused on Everyday Savings

Not all employees are worried about emergencies. Many are more concerned with the day-to-day cost of pet ownership. Discount plans and wellness options meet these needs without the complexity of insurance.

Why It’s Important to Offer All Three

Pet Benefit Solutions’ research shows that employees don’t want a single solution, they want choice. In fact, respondents expressed interest in a wide range of pet benefits, from insurance and wellness plans to discount bundles and bereavement support

Offering all three core benefit types allows employees to build a pet benefits mix that aligns with their situation, without forcing HR teams to manage multiple vendors.

Partnering with the Right Provider

Offering pet benefits is only part of the equation. Employers also need a provider that understands:

• The complex needs of modern pet parents
• The realities of voluntary benefits administration
• The importance of simple enrollment and easy implementation for HR

Pet Benefit Solutions specializes exclusively in pet benefits, including insurance, wellness, and discount options. They offer a turnkey solution with most major ben admin platforms or a simple build out on your existing platform, making rollout quick and seamless. This approach makes it easy for employers and brokers to offer comprehensive pet benefits without adding administrative burden.

Customization Is the Future of Pet Benefits

Pet ownership is deeply personal and pet benefits should be too. When employees have options that reflect their pets, their budgets, and their values, their benefits become more meaningful.

For employers, the upside is clear: higher engagement, stronger retention, and a benefits package that reflects how people actually live today.

To learn how Pet Benefit Solutions can help you offer flexible, no-cost-to-offer pet benefits that meet diverse employee needs, visit www.petbenefits.com and request a proposal.