Mortgage Payment Protection
An optional insurance policy made available on credit applications that covers repayments for a limited period if you have an accident, fall sick or become unemployed. Normally you will have to wait for an agreed period before it will start paying out and often policies will limit the amount payable. To be qualified for PPI coverage, the purchaser will typically have to be aged between 18 and 65 (or higher in some circumstances), and employed for at least 16 hours a week (or on a long term contract or have been self-employed for a period of time). Generally payment protection offers very poor value for money and is best avoided. Opting to take this insurance will not affect your chances of getting credit (by law).
Whilst Payment Protection Insurance is the formal name given to this type of insurance, it is also sold under a host of other names such as: Accident Sickness and Unemployment Insurance, Accident Sickness and Redundancy Insurance, Premium Protection Insurance, Income Protection Insurance, Mortgage Payment Protection, Mortgage Payment Insurance and Loan Protection Insurance.