Hiring a nanny may require more costs than merely the cost of the premium—nanny health insurance is often part of the compensation package offered. There are usually two types of nanny insurance offered: long-term health insurance plans and short-term health insurance plans.

Long-term insurance plans offer permanent coverage and also cover the nanny if he/she is affected by an illness such as diabetes or heart disease. This type of insurance is typically offered to nannies who plan to be employed for a long time—typically more than two years.

Short-term insurance plans offer coverage for a shorter period and are ideal for nannies who are employed under a specific contract for one or two years. Short-term insurance plans for nannies are less than half the price of long-term insurance plans, and are perfectly legal as accepted coverage for nannies according to government-accredited nanny agencies.

Remember that nanny health insurance may not be the only type of insurance that you might consider for your nanny—you might want to also look at life insurance, disability insurance, and dental insurance to ensure that the nanny’s employment is fruitful and pleasant for you, the nanny, and most importantly, for your children!