'Consider PPI in credit crunch'

By Marianne Straker, Tue 30 Sep 2008 - Published in Life Insurance

People should think about protecting their loans or mortgages against the effects of the credit crunch, it has been suggested.

Moneysupermarket.com pointed out that the worsening economic climate could lead to a greater risk of job losses and claimed payment protection insurance (PPI) could help them meet their loan payments if made redundant.

However, research from the price comparison website discovered just 14 per cent of savers regard PPI as essential, while 24 per cent are not aware of what the product is.

Emma Walker, head of protection at the website, commented: "Whether it's mortgage or loan repayments or credit card commitments, Brits looking to insure their income should consider a PPI policy."

Ms Walker also said it is "concerning" that a tenth of people reported they would only consider taking out PPI if they believed their employment was under threat.

Recently, Legal & General said consumers should consider PPI when getting married, starting a business or expanding the family.

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