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Letter P

Payment protection insurance

Insurance cover arranged by the borrower to protect against inability to meet mortgage payments due to sickness disability or unemployment owing to redundancy.

As such this cover would be more appropriately called accident, sickness and redundancy insurance due to the fact that unemployment cover is generally restricted to events that are entirely beyond the control of the insured person. Typical exclusions include being sacked or voluntary redundancy. The accident and sickness cover will also be subject to restrictions such as any act of self inflicted injury or any injury related to the use of alcohol or drugs.