It’s estimated that over one million domestic workers make up part of the South African workforce. In many cases, domestic workers are welcomed into the employer’s households, trusted with their children and often play a major role in the home, even becoming part of the family.

Sadly, many domestic workers and their families struggle financially and are unable to prepare for their retirement or have a safety net in place should something happen to them. Domestic Worker Insurance is a policy taken out by an employer on the life of a domestic worker. This policy then pays a pre-selected amount to a chosen beneficiary in the event of the domestic worker passing away or no longer being able to work. 

Although Domestic Worker Insurance is not a legal requirement, more and more South Africans are opting to take out domestic worker insurance for their valued employees. Let's take a look at some of the reasons why this type of cover can be valuable not only for domestic workers but also for employers.

Even though domestic workers make up a sizable portion of the workforce, many domestic worker employment conditions are still very informal without employment contracts, benefits, UIF contributions and properly managed leave. Taking out Domestic Worker Insurance for your employee is one step on the way to formalizing your working relationship by offering benefits as part of the employment contract. 

By opening a Domestic Worker Insurance policy for someone who helps you maintain your home, you are giving them recognition as a valued member of your household. Considering the intimate relationship that many domestic workers have with their employers' families, offering some financial protection as recognition can go a long way. Domestic workers care for your home and your family – showing that you share that same care towards them will build trust and improve working relationships.

It's not rare to find that a domestic worker is a breadwinner in their household, even with a low monthly income. Running a household, feeding children and sending them to school is not an easy task on a minimum wage salary. For most low-income earners, saving is not an option. A Domestic Worker Insurance policy provides a financial safety net for domestic workers and their families, giving some cover should something happen to them. This eases the financial responsibility that employers might face too should something happen to their long-time employee.

If you have someone working in your home, helping you mind the children or assisting you with other household tasks, you have likely built up a personal relationship working so closely with this person. Understanding that this person may be facing a very difficult financial situation, many people consider offering some protection to domestic workers, the right thing to do. Opening up an insurance policy for your domestic worker is extremely simple, can all be done online and provides a range of benefits to your valued employee.

Generally, Domestic Worker Insurance policies will cover death, disability and critical illness, meaning that if your domestic worker passes away unexpectedly or is unable to work, an amount will be paid out to their chosen beneficiary.

Premiums vary depending on the cover amount and insurer, however, there are some very affordable monthly premiums available as options. If you’re interested in finding out more about Domestic Worker Insurance, you can compare quotes from the top insurers on CompareGuru and buy a policy online in a few clicks.

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