There are a lot of different names associated with Payment Protection Insurance; PPI and Loan Protection Insurance are just a few. Many people get confused by this term, but it is simply an insurance policy that will protect the policyholder if they are in debt and cannot work because of health reasons, or they have been made redundant. All these policies are going to be very different, and the positives and negatives that they can offer will vary greatly, too. It is not uncommon for Payment Protection Insurance to be sold alongside a credit card or a loan. If a person wishes to buy PPI on its own then this is still an option.

There are a few issues with PPI, and one of the most worrisome is the fact that is has been mis-sold to millions of people. This includes things like the policy holder being unaware that they have actually paid to have a Payment Protection Insurance policy, or being pushed into a policy that they did not fully understand. Because of the many issues surrounding the sales of payment protection insurance, the Office of Fair Trading have opened an investigation.

However, as mentioned above, there are positive sides to balance the argument out. One of these is that if you have a lot of debt that needs to be paid off then this type of plan could be that extra reassurance that you need. For those in debt, PPI can be a great way of making sure that you are fully covered in the event of accident, illness or redundancy. The most obvious advantage to having PPI is that you only have to make small payments in order to be protected.

It is important to keep a few different things in mind when thinking about taking out a Payment Protection Insurance policy. For example, as with all insurance providers, the competition is fierce, so it would be wise to consider all options. Because of this, each policy provider will be able to offer you something different in terms of benefits. So you see, considering all of the different PPI providers is important. By doing some thorough research you can make sure that you are not only getting a good deal, but also that you are not being mis-sold a policy that you do not want, and do not need. It is not worth simply throwing your money away.