Store card PPI
Payment protection insurance (PPI) may also be known as credit insurance, credit protection or loan repayment insurance among other terms on your documentation.
PPI is an insurance that helps someone who has taken out any form of finance to meet their repayments if they become sick, injured or redundant.
There is often confusion between PPI and income protection insurance. The two products are very different. PPI is a short-term policy, usually 12 months, sold with a loan and other credit products. This gives the borrower time to look for a new job or to return to work, if appropriate. Successful PPI payouts are made directly to the loan provider, not the policyholder.
On the other hand income protection insurance covers 70% of the policyholder’s income if they are unable to work due to an accident or sickness. This protection is long-term and can cover the policyholder until retirement if they are unable to work again.