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What is Payment Protection Insurance (PPI)


PPI, also known as credit protection insurance, loan repayment insurance, (not to be confused with income protection or credit card cover) is an insurance product that is designed to cover a debt that is currently outstanding. PPI policies are often sold as part of the deal when consumers take out a loan, mortgage, credit card. PPI may also be sold as a "stand-alone" policy that has no direct connection to a loan, mortgage or credit card. PPI is usually paid monthly, by direct debit, but may also be paid as a "one-off" payment, for example, with a so-called consolidation loan.

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