Payment Protection Insurance

Payment protection insurance, or PPI, is insurance that will pay out a sum of money to help you cover your monthly repayments on mortgages, loans, credit/store cards or catalogue payments if you are unable to work for certain reasons covered by your policy, such as death, illness or accident, or you become unemployed through no fault of your own.

The cost of this varies. With a personal loan, the cost of PPI is usually around 10% of your loan repayment. With a credit card, the cover usually costs about 70c per €100 outstanding each month. If you usually pay off all your credit card balance each month and take out PPI, you may be paying for cover that you don’t need.