Payment protection insurance is a general term for an insurance that repays loans, mortgages and credit cards when the customer suffers injuries or is unable to work. Being a general term, it can also be named differently, but still function similar to a PPI policy. Here are the different kinds of PPI that exist, and may continue to be sold in the United Kingdom, today.
1. Credit Life Insurance
Credit life insurance is what usually comes with credit cards and loans that provide financing repayment in case of customers having health and unemployment problems. This type of insurance is a variant of PPI, and it costs more than the average single premium PPI policy.
2. Credit Disability Insurance
Credit disability insurance, also mis sold alongside credit cards and loans, covers your repayments in the event you become unemployed. It does not cover your repayments when you get sick or you face an accident. This is a single premium PPI policy and can commonly be mis sold by insurance brokers and banks.
3. Credit Accident Insurance
This is sold alongside loans, credit cards and mortgages and is also a single premium PPI that pays only for your financing if you get into an accident. The insurance policy does not cover being unable to pay due to unemployment .