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Income protection and life insurance for nannies

Most nannies are employed by the family they work for, which usually means statutory sick pay only. If you live in, a long illness could put your accommodation at risk too. If you cannot look after children because of illness or injury, the policy pays a monthly sum once the deferred period ends. Life insurance protects anyone who relies on your income.

Employed by a family

Most nannies are employees of the family they work for, who act as the employer for tax and National Insurance. That means you are entitled to statutory sick pay if you qualify, but few families can afford to pay more. Some nanny contracts include a few weeks of full pay, though it rarely lasts long.

If you work for more than one family in a nanny share, you may have two employers, each with their own sick pay obligations. That can make your entitlement more complicated, so ask both families to put their sick pay terms in writing.

Maternity nannies and temporary nannies often move from family to family on short contracts. If you work this way, you may have gaps between contracts with no employer at all, and income protection can help with periods of illness between bookings.

Live-in nannies and the home question

If you live in, your job and your home are linked. A long illness could mean the family needs to hire someone else, and the replacement will need your room. That leaves you without income and without accommodation at the same time.

Income protection can help you pay for somewhere else to live while you recover. Think about how long you could manage before you need to find a new home, and set the deferred period and benefit with that in mind.

Physical demands of caring for children

Nannies lift, carry and run after children all day. School runs, park trips, bath times and broken nights with babies all take their toll. Back injuries and exhaustion are common, and the children you care for bring home every infection going around their school.

Some nannies drive the family car for school runs and activities. If you have to stop driving on medical grounds under DVLA rules, your employer may not be able to keep you on, even if you could still do the rest of the job.

  • Back strain from lifting and carrying
  • Exhaustion from long days and broken nights
  • Frequent infections
  • Losing the right to drive for school runs

Life insurance for nannies

If you have a partner, children or family who rely on your income, life insurance can pay a lump sum if you die. Family employers rarely offer death in service, so a personal policy is often the only cover your family would have.

If you are single without dependants, income protection may be the priority, with life cover added later when you have a partner, children or a mortgage. Buying younger usually means a lower premium, fixed for the length of the policy.

How Hi Tomorrow helps nannies

We look at your contract, your sick pay and whether you live in, then compare income protection from insurers on our panel. Insurers group occupations into risk classes, and we explain whether a policy would judge you on your own job.

We can also arrange life insurance and explain what to tell the insurer if you work for two families or live in with your employer. The insurer makes the final call through its underwriting, and we help with any follow-up questions.

Questions people ask us

Do nannies get sick pay?

Nannies employed by a family are usually entitled to statutory sick pay if they meet the qualifying conditions. Some contracts include extra sick pay, but most families pay statutory sick pay only. Check your contract to see what you would get.

Can nannies get income protection?

Yes. Nannies can get income protection based on their earnings. The insurer will ask about your duties, whether you drive for work and your health. If you are paid through payroll, your payslips and P60 will usually be enough to show your income.

What happens if I live in and get ill?

If you cannot work for a long time, the family may need to hire someone else, which could mean losing your accommodation as well as your wage. Income protection can pay a monthly benefit to help with rent and living costs while you recover and find a new post.

Are nannies self-employed?

Most nannies are employees of the family, not self-employed, and HMRC publishes guidance on how employment status is decided. Your status affects whether you get statutory sick pay and how insurers verify your income, so check your contract and payslips.

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