Short-Term Income Protection [Complete 2025 Guide]

Q: How much will short-term income protection pay out?

Short-term income protection could pay out up to 70% of your usual earnings in monthly (tax-free) payments. Therefore, the exact amount you receive will depend on your income. For example, if your yearly income was £50,000 and you have a policy that pays out at 60% for a maximum of 12 months, you could receive £2,500 each month. Reassured can help you compare quotes from the UK’s leading insurers, some of which pay out up to 70% of your usual income.

Home
Income protection
Guides
Short-term income protection

Short-term income protection insurance
What is short-term income protection?
What does short-term income protection cover?
Do I need short-term income protection?
Short-term income protection policy terms and conditions
How much is short-term income protection?
Does short-term income protection cover redundancy?
What's the difference between short-term vs long-term income protection?
How much will short-term income protection pay out?

Short-term income protection insurance

A short-term income protection policy is designed to pay out a percentage of your income if you’re unable to work due to illness or injury.

Up to 70% of your usual income could be paid out on a monthly basis.

Payments are tax-free and could help you stay afloat while you’re off work.

In contrast to long-term income protection, you’ll receive these payments on a short-term basis. Typically for a maximum for 1, 2 or 5 years.

Compare short-term income protection through Reassured's advised team to receive personalised recommendations and fee-free quotes from the UK’s best insurers.

Their whole of market income protection comparison service can allow you to find the best available deal on a policy that meets all your needs.

All quotes are fee-free and without obligation, so why not get in touch today?

Compare Short-Term Income Protection »

What is short-term income protection?

As the name suggests, short-term income protection provides short-term cover to protect your income if you’re unable to work due to illness or injury.

Typically, insurers will pay out for a maximum of 1 or 2 years, but some also offer a payment period of 5 years.

Short-term income protection cover key points:

Could pay out up to 70% of your usual income
Provides monthly payments for a maximum of 1, 2 or 5 years
Will pay out if you’re unable to work due to illness or injury
Payments aren’t tied to a specific financial commitment
Payments will commence once your deferred period has passed
Possible to make multiple claims throughout the policy term
Cover tends to be cheaper than long-term income protection
Premiums start from 20p-a-day through Reassured^‡

While this form of cover can help you while you’re temporarily ill/injured, it may not be sufficient if you were to develop a long-term illness that required you to take more time off work or, ultimately, meant you couldn’t return to work.

In this scenario, a long-term income protection policy could be beneficial as you could receive payments until the policy term comes to an end.

Contact Reassured to discover the right policy for your needs.

A friendly member of the team can help you compare both short-term and long-term income protection policies from all UK insurers.

What does short-term income protection cover?

Short-term income protection covers you for illness and injury that prevents you from working.

The monthly payments you receive can help you to cover:

Mortgage/rental payments - In the UK average rental costs are £1,327 per month^[1], with average mortgage repayments standing at £1,441.36 per month^[2]
Bills & utilities - 3 - 4 bedroom houses are estimated to be paying £143.10 per month for gas and electricity^[3]
Childcare costs - £302.10 is the average weekly full-time childcare cost in the UK^[4]
Debts/loan payments - Unsecured debt (per UK adult) in the UK currently stands at £4,287^[5]
Leisure costs - It’s estimated the average UK household spends £169 per month on recreational expenses (such as a gym membership and TV subscriptions)^[6]
Other living expenses - Such as petrol, public transport, food shop, phone bill etc

There isn’t a specific list of conditions included with your policy (unlike critical illness cover), so you can claim for any illness/injury that prevents you from working and meets your definition of incapacity.

However, you won’t be able to claim for any self-inflicted injuries, injuries as a result of substance misuse and/or pre-existing conditions if they have been excluded from your cover.

How much short-term income protection do you need?

Enter your monthly financial commitments to understand the level of short-term income protection cover you might require.

Your total cover estimate

£ 0

Let us find your best quotes.

Compare Short-term Income Protection Quotes »

Do I need short-term income protection?

Whether you need short-term income protection will ultimately depend on your personal circumstances.

As short-term cover tends to be cheaper than long-term, it could be beneficial for those on a tight budget who want to take out some form of cover.

Alternatively, if you receive sick pay, a short-term income protection policy could help to provide an additional level of protection to ‘top up’ what you receive from your employer.

Assessing your current financial situation can help you establish whether short-term protection is right for you.

Alternatively, contact an expert at Reassured to receive personalised recommendations and fee free quotes.

Short-term income protection policy terms and conditions

While the specific terms and conditions offered will vary between insurers, there are some key terms you should be aware of:

Policy terminology	Definition
Benefit amount	This is the amount that will be paid out on a monthly basis. It’s sometimes referred to as your monthly benefit or cover amount. Typically, it will be between 50% - 70% of your usual income (depending on the insurer) paid in monthly payments.
Policy term	This is how long your cover will last for. You can choose a policy term to meet your needs but, often, insurers will need your cover to cease by your 70th birthday.
Definition of incapacity	What makes you eligible to make a claim. Most policies come with an own occupation definition, which means you can claim if you’re unable to do your job.
Deferred period	A specified period that must pass in order for your payments to commence. Typically, you have the options of 4, 8, 13, 26 and 52 weeks.
Payment period	How long you’ll receive payments for. In the case of short-term cover, this will be a maximum of 1, 2 or 5 years.
Premium type	This is how you pay for your cover. Typically, premiums are guaranteed, meaning the amount you pay wont change. However, it’s also possible to get reviewable (change over time) and age-based premiums (change overtime due to age).

To ensure you’re getting a policy with terms and conditions that best meet your needs, get in touch with Reassured.

A friendly member of the team can guide you through the application and explain all aspects of your chosen policy.

You’ll also have the opportunity to ask all the questions you need along the way.

Why secure short-term income protection through Reassured?

Compare short-term income protection policies from the whole of the market
Receive personal recommendations & fee-free quotes
Conduct a short-term vs long-term income protection comparison to find the best option for your needs
FCA (Financial Conduct Authority) regulated service
A dedicated team member will be on hand to answer your questions & decode any industry jargon
Affordable premiums prices starting from just 20p-a-day^‡

How much is short-term income protection?

The price you pay for short-term income protection will vary depending on your personal circumstances.

During the application process, you’ll be required to provide information in order for insurers to calculate the cost of your monthly premium.

Details required during the application include:

Age
Smoking status
Health & wellbeing
Occupation
Lifestyle
Benefit amount
Policy term
Deferred period

The table below shows example quotes for a short-term income protection policy.

Quotes are based on a non-smoker, in good health, who earns £30,000 per year. The policy term is until age 65 with a 3 month deferred period and 12 month payment period:

Age	Price per month
20	£5.00
25	£5.00
30	£5.68
35	£6.76
40	£8.22
45	£10.49
50	£11.87

Comparing quotes can help you find the best price on a policy that meets all your needs.

Save yourself time and money by comparing quotes through Reassured.

Quotes start from just 20p-a-day.

Whole of Market Comparison » Find Your Best Deal

Does short-term income protection cover redundancy?

No, with short-term income protection you won’t be covered for any type of unemployment. This includes involuntary redundancy.

Income protection will cover you for illness and injury.

Often confused with income protection, Accident, Sickness and Unemployment (ASU) is a policy which provides short-term protection and could pay out due to unemployment.

However, you often aren’t required to provide medical information during the application which can cause complications when it comes to making a claim.

ASU isn’t available through Reassured, however you can compare multiple short-term income protection polices to find the right one for your needs.

What’s the difference between short-term vs long-term income protection?

The main difference between short-term and long-term income protection is the length of time you’ll receive payments for.

With a short-term income protection policy, you’ll receive payments for a maximum of 1, 2 or 5 years.

Whereas, with a long-term income protection policy, you have the potential to receive payments for the remainder of the policy term.

Another difference is the price you’ll pay for your premiums. Due to providing cover for a limited time, short-term income protection tends to be cheaper than long-term income protection.

The table below shows the price difference between a short-term and long-term income protection policy.

Age	Short-term income protection price per month	Long-term income protection price per month
20	£5.00	£8.27
25	£5.00	£10.17
30	£5.68	£12.04
35	£6.76	£14.98
40	£8.22	£19.56
45	£10.49	£28.94
50	£11.87	£42.10

All other policy terms and conditions will be the same, such as paying out up to 70% of your usual earnings.

Why not compare both short-term and long-term income protection, free of charge, through Reassured?

How much will short-term income protection pay out?

Short-term income protection could pay out up to 70% of your usual earnings in monthly (tax-free) payments.

Therefore, the exact amount you receive will depend on your income.

For example, if your yearly income was £50,000 and you have a policy that pays out at 60% for a maximum of 12 months, you could receive £2,500 each month.

Reassured can help you compare quotes from the UK’s leading insurers, some of which pay out up to 70% of your usual income.

Simply get in touch for your free quotes.

How to make a short-term income protection claim

If you’re diagnosed with an illness or sustain an injury that prevents you from working, you can make a claim on your policy.

To make a claim, you’ll need to contact your insurer directly. You should be able to find contact details/further instructions on your insurer’s website.

It’s likely that you’ll be sent a claims form which you will need to complete and send back.

You may also be asked to provide both medical evidence of your condition (such as a doctor’s note) and evidence of your earnings.

Once your insurer has all the correct information, your claim will be assessed.

Compare Quotes from all UK Insurers »

When will short-term income protection pay out?

Income protection will start to pay out if you develop an illness/injury that prevents you from working.

Your condition will need to meet your policy’s definition of incapacity and must keep you off work for longer than your deferred period in order for payments to commence.

For example, if you opted for an 8 week deferred period, you would need to be unable to work for 8 weeks in order for your payments to commence.

When securing cover through a broker, like Reassured, you’ll have a dedicated expert to answer all your questions to ensure you understand your policy.

Short-term income protection UK [Top tips for securing cover]

Access your current financial situation - This can help you establish whether short-term or long-term cover is better suited to your needs
Lead a healthy lifestyle - Being in good health can help you secure the cheapest premium price
Always check the policy terms and conditions - It’s important to fully understand your policy to ensure you’re securing the right cover
Consider using a broker - This allows you to compare multiple quotes at once so you can find the best deal
Seize the day - Securing cover sooner rather than later can help you secure the most affordable premium