Health Insurance for Nannies
courtesy Richard Eisenberg, Eisenberg Associates
When a family decides to hire a nanny, there are other benefits that need to be provided besides salary. Many states require Worker's Compensation and, of course, all Government requirements for employees must be adhered to.
Many families wish to provide health insurance as an additional benefit, as a company might provide health insurance to its employees.
There are two approaches to health insurance; permanent health insurance and temporary health insurance. Permanent insurance can be renewed each year, even if the nanny comes down with a serious medical condition such as diabetes or heart disease. Short term insurance is written for a specific period of time, i.e. six months. If someone develops a medical condition during the policy period it will be considered pre-existing under future plans.
The cost difference for the two types of plans is remarkable. Typically, the short term plan costs less than half of the permanent insurance premium. The short term plan can be used for years, although each company generally will insure someone for one year only. Several companies need to be used with this strategy.
The permanent plan is usually used for a nanny that will be staying with a family for years, or will be a career nanny for the foreseeable future and wants the protection only permanent coverage can give. A nanny that gives a one year commitment and plans to stay in child care for a short period of time; i.e one or two years, would be a good candidate for short term health insurance.
After insuring thousands of nannies, I've found that more than 50% of the families are purchasing short term plans. They are the most cost-effective and give nannies coverage for the major disaster everyone is worried about.
Richard A. Eisenberg specializes in health insurance coverage for nannies. His firm, Eisenberg Associates, offers "Protect Your Nanny" insurance consultation and may be reached at 800-777-5765. Eisenberg Associates is the official insurance representative to the International Nanny Association.
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