life insurance
What is short term life insurance?
Fact-checked and reviewed by Kiruba Shankar Eswaran or another licensed agent on our team. Read our editorial standards.
This guide is for general educational purposes and is not financial advice. Cover, eligibility and terms vary by insurer and by policy. Always read the policy documents for the full terms, limitations and exclusions before you buy.
Insuring your life is an effective way to guarantee the availability of funds in the future, usually for your family, and about 52% of UK adults have it in some form. Short term life insurance lets you use the same facility to cover more immediate and time-limited financial obligations. It’s a fairly new product that usually has special terms and a simpler underwriting process.
Short term life insurance policies typically last for between 1 and 5 years. Many insurance companies are reluctant to offer insurance for less than 1 year.
Because the period of cover is much shorter than other term and whole life policies, the monthly premiums are lower, starting from just a few pounds.
If the insured passes away during the term of the policy, the insurer will pay out the sum insured to the beneficiaries, otherwise the policy will come to an end and no payment is due.
Unlike some whole life policies, short term insurance has no cash value. This means it will only pay out on the death of the insured and it has no investment or savings value to borrow against or withdraw.
If you’re going through temporary financial instability which you expect to be resolved in a few months or years then taking out a short term policy could be a wise move.
For example, you may want to start your own business but you can’t be sure it will succeed. Should you pass away before you can turn a profit or return to paid employment, the proceeds of a short term life insurance policy can help your family through.
Alongside life insurance, you could consider taking out income protection insurance, which will protect you and your family against the financial impact of illness or injury, rather than death.
To take another example, if you have to relocate temporarily to a country where your long term insurance doesn’t cover you, a short term policy can be a good supplementary measure.
Applying for short term insurance is usually simpler than the application process for long term policies. It often involves more straightforward underwriting, which is the insurer’s method of calculating the risk. You may not need to have a medical examination and the insurer’s questions about your health and family history could be more limited.
The pricing of short term life insurance can be complicated. Because it covers you for a shorter period and has no cash value, the premiums are typically cheaper. However, in some cases the risks could be unusually high – for example if you’re travelling to a dangerous part of the world. That could actually make the premiums higher than standard life insurance. Circumstances like this are exceptional, but it’s good to be aware of the possibility.
Many short term life insurance policies can be renewed annually which means without making a long-term commitment you have the option to extend your cover if your circumstances demand it.
To summarise, short term life insurance is particularly suitable for people who
This isn’t an exhaustive list, but gives an idea of the usefulness of short term life insurance.
Eligibility is determined by the same sort of considerations as any other form of life insurance. It’s usually available up to the age of 70 and your insurer will need to know about your medical history, current state of health, lifestyle and occupation. However, the questions they ask probably won’t be as searching as those for longer term options. The level of risk will of course vary according to your circumstances and your reasons for taking out insurance, but generally speaking, if you would be eligible for other kinds of life insurance then you shouldn’t have trouble finding a short term policy.
A complete UK guide to term life insurance: how it works, what it costs, the main policy types, underwriting, how it compares with whole of life, and the top UK providers.
New Year, new money mindset. It’s time to break free from financial anxiety once and for all. Here are six simple tips to boost your financial resilience in 2026 and bring you peace of mind all year long!
Life insurance for young adults doesn't have to be complicated or costly. This comprehensive guide covers why purchasing life insurance as a young adult locks in lower rates based on current health and how to pick the proper policy length and provider for your situation.
Introducing Theea's Coverage Calculator: the intuitive insurance tool inspired by thousands of customer conversations that turns anxiety into tailored advice and confusion into confident choices.
We’re expanding our perks with two new additions designed to turn good intentions into healthy habits. Discover everything you can get for free with an Eleos policy.
If you smoke, you may have a tough time getting income protection insurance, but it’s not impossible.
