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
Loading your options...
Thank you for using our Quote Tool
If you need some help, just call us!
T: 0208 432 7333
Our in-house Experts are here to provide FREE impartial advice!
Our Experts can answer all your questions
Our Experts can send you more appropriate options based on your personal circumstances

Very important if you are either Self-Employed or a Company Director.

Our online quote tool is good but our Experts are better

Oue Experts have access to far more insurers and can often find a better deal offline.

Saves you time, let our Experts do what they are best at

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

 
I’m looking for some kind of insurance to cover illness or injury. Do you offer this type...
 
I’m considering taking out income protection, does this work in the same way as other types of...
 
I’m a 27 year old woman and have a family history of cancer. I’m hoping to be able to get...
 
I occasionally smoke cannabis and was wondering if it would matter if i was to apply for income protection?...
Need Help? Live chat now and get an instant answer from our Experts...

Neil
Pensions

Victoria
Insurance
Our Latest Reviews
Andrew Giles
10/04/2018

From start to finish a very professional and courteous outfit. A very efficient company with a no nonsense approach. Would recommend.

Mark Burbidge
13/04/2018

First class service from start to finish. Sam Carr was very helpful in setting up my new insurance policies. He kept me up to date throughout the process and provided full explanation and advice on the products and was always available to help.

Doug Muirhead
10/04/2018

Excellent personal service from Matthew Giles, made sure we received a tailor made quote that ideally suited our requirements as a family.

We are rated 4.9/5 based on 1512 independent client reviews.
To read more of our independent client reviews click here →
REVIEWS
EXCELLENT
4.92 / 5 Average
1548 Reviews
R Steer
Overall Rating
Josh, Nick & Sam helped me set up PHI & Life insurance when I set up my own company. The application process wasn't straight forward due to my medical history, but the team made everything as simple as possible.
C Ash
Overall Rating
I have not started my health cover yet, bus so far the introduction has been very efficient and speedy.
G White
Overall Rating
Clear and concise information
D Muirhead
Overall Rating
Excellent personal service from Matthew Giles, made sure we received a tailor made quote that ideally suited our requirements as a family
S Walker
Overall Rating
Great service, independent advice, not pushy and very consultative. I would have no hesitation in recommending.