What is Payment protection insurance?
"Payment protection insurance can cover your monthly loan repayments if you no longer receive a salary due to accident, sickness or unemployment, for a fixed period of time."
"Payment protection insurance (PPI) will pay out a sum of money to help cover your monthly repayments on mortgages, loans, credit/store cards or catalogue shopping payments if you make a claim. This could be because you have an accident or sickness, or become unemployed through no fault of your own, or if you die.
This means that the insurance company will pay the monthly repayments (or a percentage of them) on your behalf for a fixed period of time if you make a claim. It is sometimes known as ASU (accident, sickness and unemployment) insurance, Account Cover or Payment Cover.
PPI is not the only product designed to protect against loss of income, and may not always be the most appropriate. Although PPI can provide worthwhile cover against unexpected changes in your personal circumstances, you should bear in mind its limitations and exclusions, and possible alternative products (such as income protection)."