Payment Protection Insurance is a financial product which is offered to consumers, and which is intended to cover repayments on loans and other credit products which the consumer has in the event that he loses his source of income.
It is not to be confused with income protection insurance, which is not specific to a debt but covers any income. PPI is widely sold by banks and other credit providers as an add-on to the loan or overdraft product. Each PPI policy will have its own terms.
Typically though most PPI policies will cover your loan/credit card/mortgage repayments for up to 12 or even 24 months. The cover will usually start to pay out after the first 30 days off work and after 60 days following redundancy Payment Protection Insurance will usually cover the customer for 5 years however some last for 10 years.
For a more detailed guide, click on our what is PPI page.