Difference between PPI and Income Protection

Alexandra0510

Hi - can someone please explain the difference to me between PPI and an Income Protection Plan.
I have been sold both in 2007 when I took out my mortgage, both policies cancelled in 2011, but I've just got round to looking into whether or not I was mis-sold anything. I spoke with my PPI provider and they have referred me to the original broker. I then spoke to the Income Protection Plan provider who explained I wouldn't have been mis-sold anything by them as my policy with them wasn't PPI. When I asked what the difference was between them (PPI and Income Protection), they didn't explain it too clearly and even they weren't sure what the difference was. All they said was they definitely didn't have an application process in place for me to have it considered whether my insurance was mis-sold.
Any help would be greatly appreciated. I am sat here thinking I'm being really thick about the whole thing!! Many thanks.

-taff

What insurances exactly did you have?

dunstonh

can someone please explain the difference to me between PPI and an Income Protection Plan.

payment protection is short term insurance that is underwritten at point of claim and only pays out for a limited period if you meet the criteria. It can be cancelled by an insurer if they no longer wish to offer it or they can amend terms. it is offered by general insurance companies.

income protection (or permanent health insurance to give it the correct generic name) is long term insurance that is underwritten at point of sale. Health, occupation etc are known at the start and cover underwritten on that basis. The insurer cannot cancel the policy and can only amend certain things if it is a reviewable plan but not if it is a guaranteed plan. It is offered by life assurance companies and some friendly societies.

I have been sold both in 2007 when I took out my mortgage,

That is quite common and indeed, usually the best advice. PPI covers the short term period and PHI with a 12 month deferment covers the long term.

I spoke with my PPI provider and they have referred me to the original broker. I then spoke to the Income Protection Plan provider who explained I wouldn't have been mis-sold anything by them as my policy with them wasn't PPI.

Neither company has any liability and income protection isnt PPI.

When I asked what the difference was between them (PPI and Income Protection), they didn't explain it too clearly and even they weren't sure what the difference was.

I wouldnt expect a telephone call centre person to know the differences.

What exactly is your problem with these?