Mortgage life insurance and PPI (Payment Protection Insurance) are not the same thing and serve different purposes.
Mortgage life insurance is a type of life insurance policy specifically designed to pay off the outstanding mortgage balance in the event of the policyholder's death. It provides financial protection to the policyholder's family by ensuring that the mortgage is paid off, allowing them to remain in their home without the burden of mortgage payments. Mortgage life insurance is typically purchased when taking out a mortgage and the coverage amount is usually equal to the outstanding mortgage balance.
On the other hand, PPI is a type of insurance that is designed to cover loan repayments in the event of the policyholder's inability to make payments due to circumstances such as unemployment, illness, or accident. PPI is not specific to mortgages and can be taken out for other types of loans as well, such as personal loans or credit card debt. The purpose of PPI is to provide a safety net for borrowers by ensuring that their loan repayments are covered in case of unforeseen circumstances.
In summary, while both mortgage life insurance and PPI provide financial protection, they serve different purposes. Mortgage life insurance is specifically designed to pay off the outstanding mortgage balance upon the policyholder's death, while PPI is intended to cover loan repayments in case of the policyholder's inability to make payments due to various circumstances.