Payment protection insurance

In 2011 a scandal broke about the PPI industry as many financial institutions had mis-sold it to customers, or implied that it was a necessary part of a bundle with their credit card or loan product. As a result billions have been paid out in compensation, giving PPI a bad reputation – however it can still be a useful product in the right circumstances.

Before you take out payment protection insurance, keep in mind that your policy may not cover you in the following circumstances:

• For the duration of your deferral period, usually for the first week to 90 days
• If you contract certain illnesses – these will be listed in the policy documents
• If you have any pre-existing medical conditions
• If you’re retired
• If you’re unemployed 

Most insurers have a deferral period at the start of your policy, during which you can’t make a claim – this will normally last between a week and 90 days. Policies that don’t have this, or that have shorter deferral periods, are likely to be more expensive.

Most insurers won’t cover claims relating to an illness you already have before taking out the policy, such as diabetes or a heart condition.

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But you might have other questions. Do we provide access to all the companies operating in a given market? Do we have commercial relationships or ownership ties that might make us feature one company above another?

We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.