PPI (Payment Protection Insurance)

Payment Protection Insurance (PPI) is a type of insurance that helps cover your loan or credit payments if you’re unable to work due to illness, accident, or redundancy. It’s designed to ensure you don’t fall behind on your repayments during difficult times. Often offered alongside loans, credit cards, or mortgages, PPI can be purchased directly from lenders or third-party providers. However, many PPI policies became controversial because they were often mis-sold, meaning customers were not always fully informed about the costs or suitability. Understanding the terms and necessity of PPI is crucial before committing to such coverage.