Payment protection insurance (PPI) policies are designed to help you repay
your debts (such as mortgages, loans and credit cards) if you have to stop
you have an accident or become ill; or
you become unemployed and you did not expect this to
happen when you took out the policy.
There are many types of PPI. The level of cover can be different from
policy to policy. Always read the policy summary for details of the
benefits and the main exclusions (the things the policy doesn’t cover). If
there is anything you are not sure about, you should always ask for more
information before you buy.
You do not have to take out PPI. You will not be
refused credit (such as a loan or credit card)
just because you decide not to buy PPI.
Should I protect my debts?
Ask yourself how you would cope if your income stopped or was reduced.
Consider your own financial circumstances, including any other insurance
cover or savings you already have.
Who can apply?
Usually, you need to be over 18 and under 65, and must live and work in
If you work part-time, are self-employed or on a fixed-term contract, check
what the policy would cover you for, as special conditions may apply.
Where can I buy PPI?
You should shop around for payment protection insurance to compare
prices and benefits. Some providers (for example mortgage lenders) offer
PPI when you apply for a loan or credit. You can also buy PPI direct from
brokers and insurers, and on the internet or over the phone.
The leaflet has been produced by
the following trade associations.
A guide to
This leaflet is a general guide to payment
protection insurance (PPI).
It also sets out the questions you should ask
when you are thinking about buying a policy.
Please ask your provider for the exact details
of the policy on offer.
What am I covered for?
This insurance usually covers your repayments for a fixed period of time
– often 12 months – if you have an accident, get ill or lose your job. In