Short term life insurance is ideal for periods of transition in your life, when you’d still like to be insured, but you’re aware that your circumstances and needs will change in the near future.
Whether you’re looking for insurance while you transition between jobs and policies, or you’re waiting on a long-term policy to take effect, there are providers out there that will offer you coverage anywhere from a few months to even a single day.
However it’s worth noting, terms of less than a year can be incredibly hard to find, especially from major providers. In reality, most short term life insurance policies are just term life cover that you take out over a short period of time.
Short term policies can be used to describe two types of cover, depending on the size of the company that offers it.
The bigger, more reputable companies usually define short term policies as a form of term life cover.
Therefore when you take out a short term life cover policy, you set an agreed term that you will be covered for and pay monthly fixed premiums during this time. If you die during the policy’s term, then the provider will pay out a lump sum to your loved ones. However if you survive beyond this period, your loved ones won’t receive a payout at the end of your cover, or when you do eventually die.
These short term life insurance policies are likely to fit the following criteria:
Different companies have different minimum terms for their term life insurance policies, and can vary anywhere from 1 to 10 years. However, the minimum term may be higher if you’re looking to take out life insurance alongside critical illness cover.
While rare, some smaller providers (such as Pulse Insurance) offer niche short term policies which can offer coverage for as little as one day, for a single lump sum payment.
Short term life insurance of this nature is entirely dependant on personal circumstance, but these policies are usually:
Yes. Many other policy types can offer you shorter terms of coverage. These term lengths can vary anywhere from 1 to 5 years, depending on the type of insurance you take out, the specific policy, and your own circumstances.
Income protection insurance, or IP insurance, is designed to support your financially should you find yourself unable to work as a result of illness or injury. This policy is ideal if you’re self- employed, or you’re not provided with adequate sickness pay by your employer.
You pay in monthly premiums throughout the term of your policy, and should you make a successful claim, you’ll receive a percentage of your gross salary in regular instalments until you’ve recovered and returned to work.
If you’re looking to take out a short term income protection insurance policy (STIP insurance), you can get regular payouts for a shorter period of time - usually up to 1 year- while you recover.
It’s worth noting that some providers will also include redundancy within their income protection insurance policies.
Payment protection insurance (PPI) is a type of policy which covers any loan repayments, in the instance that you’re unable to work and keep up your payments as a result of injury, illness or redundancy. The protection this policy offers usually lasts up to roughly 2 years and can cover any loans including credit cards and mortgages.
You should be aware there will be a delay between the date you make a claim, and the first payment. Depending on the policy the length of this delay will vary, but it's usually around 90 days after you file for a claim.
Short term life cover is designed for periods of transition in your life, where committing to a longer term policy isn’t beneficial.
Therefore if any of the following criteria describe your situation, a short term policy may be beneficial:
The factors which affect eligibility varies from company to company. However when looking into short term life insurance, you should always consider the following:
Please note: If you’re looking to get a short term life insurance policy for under a year, then you’ll need to provide the company with extensive medical and lifestyle information, and you may find that eligibility is harder to qualify for. You can also expect a substantially higher premium than you would with a more standard short term policy.
Like with any life cover, you’ll have to weigh up the advantages and disadvantages of a short term policy before deciding if it’s the best choice for you. To make things simple, we’ve laid out the main factors you should consider:
That depends on your specific provider, policy, and circumstances. As each policy would be tailored to suit your particular needs, the coverage offered by a short term life insurance policy can vary greatly.
Like with any term life insurance policy, you can get policies which will pay out in the millions. However, this level of coverage is less common with short term protection; your monthly premiums would be drastically increased due to the short period of time in which you’d be paying for the policy. To qualify for such high coverage, you’d also have to fit certain criteria specified by your provider.
It’s more likely that with a short term life cover policy, you’d take out coverage in the tens/ hundreds of thousands. As with all life and assurance policies, the right policy for you will cater to your specific needs and financial circumstances.
It depends. For policies under a year, the total premium usually starts around £300. However, when looking for an estimated cost of term life insurance, you’ll often find average premiums based on 20 - 30 year long policies, and so the cost of short term cover is difficult to advise.
As with any term life insurance policy, your monthly premiums will be affected by your:
The term length is particularly relevant in the case of short term life insurance, and you’re likely to pay higher monthly premiums (or a total lump sum) to ensure that should you die in this brief term, your loved ones will receive adequate coverage.
Maybe. To decide whether short term protection is the best choice for you, first you need to work out what it is you’re looking to cover, and more importantly, for how long.
Short term life insurance policies aren’t designed to be taken out consecutively over an extended period, as you’ll end up paying more in premiums than you would with a long-term life insurance policy. However if your needs or circumstances are due to change soon, then you may find that short term insurance can offer you the correct level of coverage for where you are currently - until your needs are more consistent, long-term.
It’s often rare for people to take out short term insurance policies, as this type of insurance isn’t suitable for people who have mortgages which they’d like covered within their policy.
We can help you there. If you’re looking for a life insurance policy with a term less than a year, it can be difficult to find a quote. However these quotes are out there, and providers such as Pulse Insurance even offer life insurance for as little as one day. However, if you want to compare your options, then filling in our form will take you where you need to go.
We’ve also reviewed each of the main life insurance policies and the most reputable providers of short term life insurance, so you can find a policy which suits your needs. We recommend reading through all the reviews and information, so you’re sure you know all the details of a policy before you commit.
If you want to compare quotes quickly, click the button below and we’ll help you find exactly what you need.