Payment Protection Insurance or PPI is an insurance policy available on financial products like loans, credit cards or mortgages.
The purpose of PPI is to help protect you in the event that you are unable to make payments on your loan or credit card.
If you become unemployed or through accident or illness you find yourself unable to meet your monthly repayments on your loan, credit card or mortgage, Payment Protection Insurance is designed to help you meet your monthly financial commitments.
Payment Protection Insurance is a general name or umbrella term that covers many different different products. Depending on the financial organisation that sold it, the insurance may be referred to by another name, such as, Payment Cover, Loan Protection, Loan Repayment Insurance, Credit Cover, Credit Insurance, Account Cover or Accident Sickness and Unemployment Insurance.
Whichever name it goes under, the insurance product is designed to help you meet your monthly repayments, up to a limit, but only on the specific loan, mortgage or credit card that it is associated with. For instance, a PPI policy on your loan will not meet your monthly repayments for your credit card, unless you have specifically taken out another PPI policy for that credit card.
If you are unsure if you currently have, or used to have, PPI on your loan, credit card or mortgage, the best way of checking is to look at your monthy statements.
If on a monthly basis there is an additional charge on your statement, unrelated to specific credit card purchases and not called interest, but with a name like Payment Cover, Payment Protection Premium, Card Protection, Loan Protection, or one of the other names listed above, then it is likely that this is PPI.
Look back through a few statements and it the charge appears on most statements the this should be further confirmatino that you had a PPI policy associated with your financial product.
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