Payment Protection Insurance (PPI) is the insurance that is sold alongside loans, credit cards and other finance agreements to protect your repayments. PPI is designed to protect the borrower in the event you are unable to meet the repayments of your finance agreement. Each PPI policy works in different ways, however, the majority of policies include loss of employment, medical illness and accidents.PPI is designed in a way that there is no monetary value to the client when a claim is accepted. The insurance pays the creditor directly for the duration outlined in the terms and conditions to meet your repayments. This can be anywhere from 6 months of payments upwards.