Payment Protection Insurance (PPI / ASU)

Payment protection insurance is usually a monthly or annually renewable general insurance policy (although some policies have been sold as single premium contracts in the past).

A monthly benefit is usually paid on being unable to work because of accident, sickness or unemployment for up to 12 or 24 months only.  Life assurance may also be included.  PPI policies (sometimes also known as creditor insurance) are designed to cover loan liabilities mortgage PPI (MPPI) to cover mortgages and ASU (accident, sickness and unemployment) to cover general income needs.