Payment Protection Insurance
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Payment Protection Insurance
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Payment protection insurance is different to income protection insurance, as the former is taken out in conjunction with a mortgage, or other type of loan. It is a type of accident and sickness insurance and often also includes cover if you are unemployed. However, in general, the payouts just cover the interest or repayments on the loan and do not provide the extra replacement income you would need to cover other expenses. Typical payment protection insurance pays out for a maximum of one or perhaps two years, so you are not protected in the event of a long-term illness.
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