Payment protection insurance (PPI) explained

Payment protection insurance (PPI) was designed to cover debt or credit repayments in certain circumstances where you can’t make them yourself, such as redundancy or where you cannot work due to accident, illness, disability or death. 

PPI is now rarely sold but we found that in the past it was often mis-sold. Since January 2011, more than £26bn has been paid back to PPI customers who complained about how it was sold.

We have set a deadline of 29 August 2019 to complain about the sale of a PPI policy – you will not be able to complain after this date.

Find out how to complain about the way you were sold PPI.

What PPI can cover

PPI was designed to keep up your repayments on personal loans, mortgages, credit cards, store cards, overdrafts or other credit, such as credit to buy a car.

Other names for PPI include loan protection, credit insurance, loan repayment insurance, ASU (accident, sickness and unemployment) insurance, account cover or payment cover.

Buying PPI or other income protection products

PPI is now rarely sold but it may be a suitable product in certain circumstances.

Before you buy a policy, you should look closely at its features and consider your circumstances, such as:

  • the cost of the policy
  • whether the policy is appropriate for your age and country of residence
  • whether you have other insurance that could cover your repayments
  • the types of injuries and accidents covered or not included, such as stress or back problems
  • whether the policy covers any pre-existing injury or illnesses
  • how long the policy will cover your loan or debt repayments
  • whether the cover starts immediately when you make a claim
  • whether there are limits on the amount you could receive for a claim
  • whether the policy covers you if you are self-employed
  • how long you have to be in permanent employment before you can make a claim

There are other products that may protect you against loss of income and suit your circumstances better than PPI, such as income and payment protection products or other types of short-term protection insurance. 

Contact us about PPI

If you want help understanding the information on this page to help you decide what to do next, you can call us on 0800 111 6768 or see other ways to contact us.

Note that we cannot give advice about your individual circumstances or help you complain about the sale of PPI.