Loan protection insurance or payment protection
insurance (PPI) is designed to help policyholders by providing financial
support in time of need. Whether the need is due to disability or
unemployment, this insurance can help protect monthly loan payments and
protect the insured from default.
The loan protection policy has different terms depending on where it is
offered. In Britain, it could be referred to as accident sickness
insurance, unemployment insurance, redundancy insurance or premium
protection insurance. These all provide very similar coverage. In the
U.S. it is oftentimes referred to as payment protection insurance (PPI).
The U.S. offers several forms of this insurance in conjunction with
mortgages, personal or car loans. Read on to find out how these
insurances work and if they could be right for you.
