If you can’t work due to illness or injury, there are several types of insurance you can take out to help cover your living costs.

Short-term income protection is arguably one of the most beneficial but - because it’s the least expensive - some insurance brokers leave it out of the conversation.

Short-term income protection (STIP) is ideal for people that are self-employed or don’t have employee benefits such as sick pay or redundancy to fall back on. 

Likewise, you should consider STIP if you have not accrued much in savings or want to protect the savings you do have.

What Is Short-Term Income Protection (STIP)?

STIP is a form of income protection that covers 65% of your income or up to £2000, whichever is lower. Policies provide you with an income to cover the cost of your mortgage, utility bills, shopping and other family activities. 

As the name suggests, policies only pay for a short-term period, typically 12-24 months, although some STIP plans provide financial cover for up to five years. 

Targeted STIP products are also available. Rather than protecting your entire income, some accident and sickness insurance policies will just cover the cost of your mortgage, rent and bills.

What’s The Difference Between Accident & Sickness Protection And Income Protection?

Accident and sickness protection is often referred to as short-term income protection. STIP provides several key benefits if you are unable to work.

STIP is a less expensive alternative to full-term income protection but can give you the same cover. 

The main difference is that STIP only covers you for up to 24 months whilst income protection policies usually cover you until you can return to work.

Because accidents and sickness insurance cover you for a shorter period, the premiums are cheaper than full-term income protection. 

If you need help choosing the right income protection policy for you and your family, contact us today and speak with one of our friendly advisors. 

The short-term income protection we offer at Bettersafe also protects you if you temporarily return to work for less than 75% of the hours your typically work.

You don’t need to take out short-term income protection, but it does give you peace of mind knowing that you and your family will be financially protected if you are unable to work due to an accident or sickness.