Should I take out payment protection?

I have a few loans and I am thinking of taking out payment protection to cover them and my other monthly expenses in case I am off work sick.

Question asked by Helen Young
Compare Top 10 UK
 Protection
Insurers
 
Takes approx. 60 seconds
Type of Policy
Income Required
per
month
Date of Birth

Answered by Andrew Jenkinson

PPI vs. Income Protection

Payment protection insurance (PPI) was originally designed to cover the repayment of a loan against accident, sickness or unemployment. There are several limitations and shortcomings of the product.

It is a short term cover- policies pay out for 12 months

Policies are renewable annually so premiums could increase.
A major issue is that PPI insurers often only provide suited occupation cover. This means that if you are unable to work in your current role they would look to see if you could perform another role for which you are qualified.

PPI insurers don’t typically publish their payout rates.

We recommend that people take out income protection as opposed to payment protection as it is a more comprehensive plan. This is designed to cover your earnings if you are unable to work due to injury or illness. You can cover up to 70% of your gross income so it can be used to cover your monthly expenses. Unlike PPI, policies are underwritten upfront so you know what is covered before you start paying the insurance. Some plans also the option to add unemployment cover.

Get in touch…

Please feel free to give us a call on 0208 432 7333. One of our advisers can run through your options and provide you with quotes from across the market.

income protection
 
PPI
 
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
Compare Top 10 UK Insurers
  Takes approx. 60 seconds
 - 
Need help? 
Call us on 

Frequently Asked Income Protection Insurance Questions

 
Am I still eligible for income protection if I’m self-employed or is it only for people who...
 
I work on a zero hour contract, is there any unemployment/sick cover i can get (like self employed...
 
Is it possible for me to take out an income insurance policy and pay the premiums through my limited...
 
I want some insurance to cover my salary if I am too ill to work as I don’t have much sick pay....
Need Help? Live chat now and get an instant answer from our Experts...

Neil
Pensions

Victoria
Insurance
Our Latest Reviews
Elizabeth Owen
10/10/2017

Sam was knowledgeable and attentive and spent a long time explaining and working out what Income Protection insurance would be best for me.

Adam Doree
04/10/2017

I researched Drewberry to make sure they would be likely to add value to the confusing process of finding suitable insurance – and they delivered completely; I was very impressed and feel like they added real value in terms of consultation and guidance. Would recommend without hesitation.

Jonathan Moss
04/10/2017

Will is fantastic went through everything in detail really helpful and ultimately ensured that I went with the best product for my circumstances. Thanks!

We are rated 4.9/5 based on 1129 independent client reviews.
To read more of our independent client reviews click here →
REVIEWS
EXCELLENT
4.92 / 5 Average
1,263 Reviews
Anonymous
Overall Rating
SAM Carr was exceptional, he made my life very easy by explaining all the details very clearly whilst giving me the best advice possible for myself.

Would recommend to a friend!
Anonymous
Overall Rating
Provided the advice & guidance that I needed
M
Overall Rating
The overall experience which I have had can be summarized by Professional, Swift and friendly. I would recommend the service to others.
D
Overall Rating
Extremely helpful and rapid service at short notice.
A
Overall Rating
Very clear explanations of the options and then efficiently processed the transaction