UK workers pay the price for wrong protection

At a time when every penny counts, millions of people are paying over the odds for protection which may not reflect their needs, according to the latest protection study from the Post Office.

The study shows that one in five full-time workers (20 per cent) have more than one PPI policy and could save themselves up to £570 per year by taking out a single product that could cover all major household bills.

Ongoing investigations from the Office of Fair Trading (OFT) and the Competition Commission have revealed that millions of consumers have fallen victim to this mistake by purchasing expensive PPI policies when taking out credit. Early recommendations from these investigations urge customers to shop around for a standalone product which meets all their needs.

Duncan Caesar-Gordon, head of protection at the Post Office comments: "In the current financial climate every household is understandably looking at their household budgets, and now more than ever, people are looking at the best way to save money. One of the first expenses that should be scrutinised is PPI, which can be a costly product.

"However, people shouldn't look to get rid of their protection all together, especially as unemployment fears grow. People who are worried about being able to pay all their bills if they lost their income should look for one simple product that covers all their outgoings rather than having a separate policy for every loan and credit card.

"With Post Office Lifestyle Protection, consumers can not only save a substantial amount of money, but they can also gain peace of mind by being more protected at a time when they need it most. Our research shows that switching to a product like Post Office Lifestyle Protection people could save up to £570 a year by ditching the PPI tagged on the back of a credit card or loan. Every £100 of cover costs just £4.50 a month and consumers can cover not only a credit card, mortgage or loan repayment but household bills too. Or better still a combination of all of them."

The Post Office launched Lifestyle Protection in June 2006, which covers accident, sickness, unemployment and life for just £4.50 per £100 of monthly cover, offering customers a fair deal and allows customers to choose which debts or regular outgoings they wish to protect.

To find out more about Post Office Lifestyle Protection cover, log onto postoffice.co.uk