Short-term income protection

Short-term income protection premiums vary widely. Your age, job, health history, and the amount of protection you want all play a role in calculating the cost. A 35-year-old office worker might pay around £20 monthly for a policy replacing 60% of their income, while a construction worker could face higher rates due to the increased risks of their job.

The waiting period - sometimes called a "deferred period" - is the gap between when something happens to prompt a claim and when your insurance starts paying out. It determines how quickly you'll receive financial support. Most policies offer waiting periods ranging from around a week to as long as 12 months. The choice can dramatically impact the premium you pay. A one-month waiting period might cost 30% more than a three-month alternative. But the difference allows you to plan around your specific needs and pay a premium that suits you.

Typically, insurers will have some kind of restriction on pre-existing medical conditions - that is, conditions you knew about or were receiving treatment for before starting your policy. This doesn't mean you're completely unprotected. Some providers offer modified coverage that might exclude specific conditions or charge higher premiums.

Self-employed people face a unique set of challenges when it comes to income protection, but it doesn't mean they're without options. Insurers have become more and more sophisticated in supporting the growing freelance and gig economy. To obtain coverage, self-employed workers typically need to provide proof of a consistent income. This usually means presenting at least 1-2 years of tax returns, accounting records, and detailed documentation of your work. Insurers want to see stable, predictable earnings, even if your work structure is flexible.

The claims process is carefully designed to verify and support your situation. Fast and accurate documentation from your side will speed the process along and help avoid any disputes. When a qualifying event occurs, your first step is to notify your insurance provider. You'll need to put together a full document package that tells the complete story of your income interruption.

Returning to work after an income interruption is rarely a simple matter. Modern income protection recognises this, offering layered support that helps you get back to full employment. Many policies now include partial benefit options. Instead of completely cutting off support when you return to work, they provide proportional coverage. For example, if you can only work 50% of your previous hours due to ongoing recovery, the policy might continue paying 50% of your original benefit amount.

When guaranteed premiums are included in your plan, they provide fixed premiums for the life of the policy, regardless of factors like age or ill health. In the event of illness or injury, there'll be no risk of your income protection payments rising. Guaranteed premiums are typically included in standard or higher-end income protection plans, but not all. Some insurers offer the option to add guaranteed premiums as a feature, but this often comes with an additional cost.