Maid Insurance: Basic Plans vs. Premium Plans

Buying a maid insurance policy is a required part of your maids' hiring process. Generally, maid insurance plans fall into two categories: basic plans where cost and coverage are low and premium plans where cost is high and coverage is comprehensive. Below, we've written a guide on who should opt for which type of plan and why.

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Basic vs. Premium Maid Insurance Plans

Basic maid insurance plans are the best options for people who want to spend as little as possible. Alternatively, premium maid insurance plans are more expensive but offer comprehensive, and sometimes unique, coverage. Basic plans are better for people who are cost-conscious, people who don't want to invest in maid protection or people who have healthy, trustworthy maids that do not pose a liability. Premium plans are better for people who have flexible budgets, people who have older maids or wealthy people who need extra protection against theft or lawsuits.

Who should get basic maid insurance

Basic plans are a good option for people who are cost-conscious or don't care about investing money in maid insurance. For a market average price of S$289, you will be receiving the required Ministry of Manpower's minimum S$15,000 for hospitalization coverage, S$60,000 for accident expenses and S$10,000 in repatriation coverage. If you find a great value plan, you may even get options like wage reimbursement and a couple thousand dollars of liability coverage. In general, basic plans are good for people who have been overpaying for benefits they don't use and want to cut down on costs. If you have a younger, healthy maid who is not likely to have serious medical issues like strokes or heart attacks, a basic plan can be just enough.

Basic plans are not recommended for those who have older maids, as health problems and medical costs tend to increase with age. Thus, if you want to have ample coverage against a variety of possible medical expenses, it is unlikely that a basic plan will be able to cover everything adequately. The same goes for liability coverage, since this is an option usually offered with more expensive plans. This makes basic plans a slightly riskier option for those who have been with an older maid for a long time or who have had experience with theft or other suspicious behaviors.

Good forBad for
Cost-conscious consumersPeople who need comprehensive coverage
Consumers looking for high-value plansConsumers who want outpatient expense coverage
Consumers who don't want a lot of protectionWealthy families that need extensive liability or theft coverage
Employers of healthy, trustworthy maidsEmployers of older maids or those exhibiting risky behavior

Who should get premium maid insurance plans

Premium plans are a good option to consider if your maid will be responsible for multiple children or the elderly, as this will require more work and leaves more room for accidents. These plans offer high hospitalization and accident coverage, a perk that becomes very beneficial if your maid ends up with a high hospital bill. At an average cost of S$361, premium plans will offer up to S$30,000 of hospitalization coverage, protection against theft and thousands of dollars in liability coverage. Premium plans are also a good choice for those who want protection for themselves and their valuables against their maid's possible risky behavior. While everyone has material items they care about, if your household goods are very valuable or rare, premium plans that offer high levels of theft or liability coverage will be worth the cost.

On the other hand, if you feel like your maid won't have many medical or other issues, a premium plan's coverage might go to waste. They're also not the best option if you are on a tight budget since they are usually 20% more expensive than basic plans. Not only that, you should be wary of premium plans that offer skimpy coverage for a high price. In some cases, insurers may be tempting you with marketing ploys under the guise of very high but useless coverage to get you to buy a more expensive plan.

Good forBad for
Consumers who want comprehensive coverageBudget-restricted consumers
Consumers who need protection against a variety of medical or liability expensesConsumers who do not currently have many out of pocket costs
Employers of maids who will be taking care of the elderly or multiple childrenConsumers who want to downsize coverage
Wealthy families with a lot of valuables

Conclusion

Whether you are searching for a basic or premium plan, comparing the plans to their industry peers will help you choose wisely and not get swindled by marketing ploys and poor value plans. If you have a tight budget, you may not be able to afford a premium plan—even if you need one. In this case, you can look for high value basic plans. If you have a flexible budget, premium plans are a great option because the risks of hiring a maid are always present and it is difficult to anticipate health care and liability costs.

The Ministry of Manpower and other maid organizations recommend it is best to tailor coverage to your needs rather than focusing on the price of the premium. Due to the ambiguous nature of maid employment, it is difficult to predict out of pocket costs, hence why investing in your maid insurance a great cost-saving solution.

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