If you fall ill, have an accident or lose your job, what would happen to your loan repayments? Payment protection insurance (PPI) is designed to help cover your monthly loan payments for a set period, usually 12 or 24 months.
Your lender will probably try and sell PPI when you take out your loan. But you do not have to buy insurance from your lender - and you will probably find a cheaper policy if you shop around.
Always scrutinise the small print carefully. Many people have in the past been mis-sold PPI so it is important to check all the policy exclusions. You might also decide that you can manage without PPI, perhaps if your loan is only small or you would be entitled to long term sick pay in the event of an illness. In our guide to payment protection insurance, we explain exactly what PPI does and does not cover. We consider who needs such insurance, who qualifies for it and how to find the best
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