Payment protection insurance (PPI) is a way to keep up with payments on your debts in the case that you are unable to work due to illness, an accident, or if you’re made redundant. For example, if you get PPI for a mortgage and you fall ill and cannot work, it will cover your mortgage repayments. You can get PPI for credit cards, loans or catalog shopping payments.


The insurance company typically will pay these debts for you for a fixed amount of time, generally twelve of twenty four months, or until you can get back to work. Payment protection insurance does not cover particular illnesses, the first ninety days after you lose your job, illnesses that you had before you took out the policy, and people who are retired.

If you obtain PPI, be sure that you pay a price that is reasonable. What you pay monthly will vary, depending on a few things. Factors such as the maximum number of payments you can claim, and how long you will have to wait before your policy will pay out.

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Is Payment Protection Insurance Right for Me? 

Is Payment Protection Insurance Right for Me

Payment Protection might be right for you if you are made redundant and you will not be able to keep up repayments on your mortgage, you meet the criteria that will make you eligible for your claims, and if you take some time to compare prices and coverage for various policies. Good candidates for payment protection insurance might have only a small amount of savings and a large amount of debt.

When is Payment Protection Insurance Unnecessary? 

You may not need payment protection insurance if you have enough sick pay to last you through an illness. You typically won’t need it if you do have enough in your savings to maintain your payments. If you have a partner or a family member who would support you if you were to lose your job, you would not need payment protection insurance. Finally, if you only have extra money for basic insurance (like car insurance) you will likely not be a good candidate for payment protection insurance.

Tips on Making the Right Decision about Payment Protection Insurance

You may want to consider PPI if you have a mortgage, credit card payments or a loan and if you want to be sure you can continue to pay these debts in case you are out of work. It’s recommended that you insure your mortgage before any credit card debt or loan debt. Closely inspect your policy documents and ask your insurance company, financial adviser or broker to explain all of the conditions clearly and thoroughly to you, especially if you are confused about an issue. If you already have a claim and you believe that it was mis-sold to you, you can get a refund. You calculate how much you are owed with a site like – you’ll need to know your interest rate, the loan amount and the terms of the loan.