Payment protection insurance mis selling had given a bad impression on the word itself. According to Conservative MP for Cardiff North Jonathan Evans, income protection’s reputation is heavily damaged because the word ‘protection’ is publicly associated with payment protection insurance mis selling.
“It’s not that the product is toxic, but it’s the way that the product is viewed among the public.
“Every 10 minutes on daytime TV we are being told that protection is a bad thing because of the context of payment protection insurance.
“In 2015 all political parties are agreed that the welfare state is going to contract so it is necessary to stimulate a proper participation market, yet we are struggling to do that against this backdrop.
“We can either invent another word or be much more proactive in encouraging people to take this on.”
UK banks had mis sold payment protection insurance, which functions similarly like income protection because of PPI’s accident, sickness and unemployment protection. However, income protection is different because it only covers your monthly compensation and deals with another set of circumstances.
Today, PPI’s total recompense amount is at £24.4 billion for the entire UK banking industry with Lloyds Banking Group taking the helm with £12 billion in total since the start of the crisis.