Compare payment protection insurance quotes with our preferred provider, PMI partners*
Suitable for ages 18-64
Designed to cover your outstanding debts and financial commitments
Peace of mind if you are unable to work due to accident, sickness or unemployment
Tailor your cover to best suit your needs
Payment protection explained
What is payment protection insurance (PPI)?
Payment protection insurance (PPI) covers monthly loan and/or minimum credit card repayments if you are unable to work for a limited period of time due to an accident, sickness or unemployment. Usually PPI cover is only available for a short period of time – typically in the region of 12-24 months. Many people see PPI as providing peace of mind, as for a monthly premium your repayments are covered if you're unable to work, and some companies even include a full repayment if you die.
What cover options are available?
When taking out payment protection insurance there are several options available:
Cover yourself against accident, sickness, and/or unemployment. Depending on the provider it may also be possible to cover yourself against terminal illness or death. Bear in mind, however, that the more you cover yourself against, the higher the premiums are likely to be.
Choose a wait period that you are happy with. Typically, you are eligible to make a claim between 30 and 60 days after you stop working. However, there are now policies that will back date your payments to "day one" – i.e. when you first became unemployed or unable to work.
What else should you look for when taking out payment protection insurance?
There are a number of circumstances in which a claim made on a PPI policy can be denied. For example, an insurer will not normally pay out if you take voluntary unemployment or if your unemployment is the result of misconduct of dishonesty. You will also not be covered if your unemployment occurs due to a pre-existing medical condition or if it can be determined that your redundancy was foreseeable. It is particularly important to check this rule as definitions can vary – for example, insurers could argue that your unemployment was foreseeable if you work in an industry under that has been particularly badly affected by the recession threat.
How to choose the right payment protection insurance policy
Payment protection insurance is often sold by loan and credit card providers themselves at the time that you take out an agreement with the company. However, these policies are often expensive and you should remember that you are not obliged to take out PPI at all and even if you do want it then you may find a deal that's better suited to your needs by shopping around independently. Just check the terms and conditions carefully to ensure the policy offers value for money.
Be sure to enter all your information accurately, as omitting or providing inaccurate information may invalidate your claim. Before deciding to purchase a policy you should ensure that the terms of the policy meet your demands and needs.
Our preferred provider
We have partnered with PMI Partners*, our preferred provider for payment protection insurance, to help you choose the right deal to suit your needs.
