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Contributed by mm | September 21, 2006 8:10 PM PST
1. Payment Protection Insurance (PPI) is offered by a lender as cover for a borrower so they can maintain repayments on their personal or secured loan and avoid getting into debt if they have an accident, are sick or become unemployed. PPI is normally purchased when you take out a loan from the lender, but may be available at a later date or as a stand-alone policy.
2. Payment Protection Insurance (PPI) is credit insurance that provides life insurance which pays a lump sum toward a personal loan or line of credit upon the death of the borrower or co-borrower. Also, disability insurance for the primary borrower that pays monthly benefits toward the loan or line payment when life insurance is also purchased.
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