Payment Protection Insurance (PPI) is an insurance product that is designed to cover repayments in the event of unforeseen problems, such as redundant or couldn’t work due to an accident, illness, disability, or death. The PPI policies may vary slightly from policy to policy.
Reference Definition by Wikipedia: Payment Protection Insurance (PPI), also known as credit insurance, credit protection insurance, or loan repayment insurance, is an insurance product that enables consumers to ensure repayment of credit if the borrower dies, becomes ill or disabled, loses a job, or faces other circumstances that may prevent them from earning income to service the debt. It is not to be confused with income protection insurance, which is not specific to a debt but covers any income. PPI was widely sold by banks and other credit providers as an add-on to the loan or overdraft product.
Related Definitions in the Project: The Bond and Insurance
