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 loans work and if they could be right for you.
