Glossary - Payment Protection

Payment Protection is repayment cover insurance.
The borrower takes out this insurance to cover them for any unforeseen event that may happen and therefore hinder their ability to repay finance borrowed. Payment protection cover is also known as credit insurance cover. Many lenders who offer financial products to customers have payment protection available.

Example: Financial Payment Protection Cover
Payment protection is covered by individual terms and conditions, these will vary, the size and the length of the cover is subject to which type of payment protection is taken out.

Loans
Loan protection insurance can help to protect loan repayments if customers become unemployed, suffer an accident or injury or in the event of a death it would repay a UK loan.

Mortgage
Mortgage protection insurance helps to cover and protect mortgage repayments if a customer becomes unemployed, has an accident or is injured it can help repay the mortgage balance in the event of a death. Nearly all mortgage lenders insist that there is some kind of insurance protection being taken out before they grant the mortgage.

Protection Tip
Consumers must make sure that they select a suitable level of cover as payment protection cover varies a lot. As with most insurance cover there are certain conditions that must be met, premiums to pay, excesses and exclusions within the policy and there will be a claims procedure to follow.

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