Matt Morris, Senior Policy Adviser at LifeSearch, comments on the FSA review of PPI sales

LifeSearch Senior Policy Adviser, Matt Morris, says:

"We are concerned, particularly in the current economic climate, that consumers may be led into believing that they have to buy PPI to get Unemployment Cover, which is not the case.

To anyone other than an insurance technician, the ABI's comment today that "PPI is the only financial product that covers unemployment' could be misleading.

"It's important to be clear that buying PPI is not the only way for consumers to protect themselves against redundancy.

Unemployment Cover can be bought stand alone, and as an addition to policies such as Income Protection and Real Life Cover.

"Income Protection offers far more comprehensive cover, and has a better paid claims record, than PPI.

Consumers are much better off buying this type of product with additional Unemployment Cover than they would be with PPI.".

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