PPI, also known as payment protection insurance, is often sold with various forms of finance, such as credit cards, loans, and car loans, and this type of cover has been at the centre of controversy for the past couple of years. Following an investigation by authorities it was revealed that this form of cover was being mis-sold by many providers and lenders, and this resulted in heated debate about the cover.

The investigations carried out by authorities revealed a whole range of problems relating to the sale of PPI, and it was found that some people were having the cover added to quotes and finance without their knowledge or consent, some were being told that they had to take cover the get the finance that they had applied for, and some were being sold the cover despite the fact that they did not fit the criteria to make a claim.

Despite the issues that have come to light with PPI, there are many people that could benefit from the cover and protection that this type of insurance offers. The purpose of PPI is to cover debt repayments for the policyholder for a specified period of time in the event that the policyholder falls ill, has an accident, or is made redundant and is unable to make repayments on the debt.

PPI can be an expensive form of cover, and because it is added to the finance policyholders will find that they are paying interest on the cost of cover. Don’t be fooled into thinking that you have to take PPI through the lender that you are taking finance with, as this is incorrect, and in fact you don't have to take PPI at all. If you do take it make sure you shop around for the best deal.

You can look online for suitable PPI cover, and the Financial Services Authority, the UK financial regulator, also offers facts and figures relating to PPI on its website for those interested in taking out this cover. Over recent weeks industry officials have reported an increase in the number of enquiries from those looking for PPI, and this is because many may be in fear of losing their jobs and being unable to keep on top of repayments in the current economic and financial climate.

For those that do not want to take out PPI to cover their debts, there is another option available, and this is income protection insurance, which protects some or all of your income so that you can still meet your financial obligations should something unexpected occur. With this type of cover you are normally charged per £100 of income protected, and the cost of cover can vary based on the provider that you choose.

No matter what sort of protective insurance you opt for, whether it is PPI or income protection cover, you should remember that the cost of cover can vary between providers, and therefore you should ensure that you browse and compare cover before you commit. Make sure that you always check the terms and conditions of any policy to ensure that it is right for you.