Glossary: Payment Protection

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Payment Protection

Most credit card companies will give you the opportunity to pay a premium based on your outstanding monthly balance to cover you in the event off you becoming unable to make their monthly payments due to accident, illness, disability or unemployment. Often, these payment protection policies can be poor value when compared with income protection insurance, or health insurance policies, which will cover you for a much wider range of financial payments, including your salary.

We advise you to compare a full spectrum of insurance cover options before automatically accepting any payment protection policy your bank offers you, especially if they catch you on one of those pre-dinner telesales calls. Payment protection insurance should not be confused with card protection insurance services such as Sentinel.