Recent research has indicated that taking out just one payment protection insurance policy (PPI), is more cost effective than having several policies, according to recent research from the Post Office.

The research found that one in five workers have more than one PPI policy, but could save a substantial amount of money, if they switch to just one policy. The Post Office stated that PPI policy that is to be used for a credit card and a loan could save up to £570 a year by replacing them with Post Office Lifestyle Protection Cover. A PPI can be used as a form of health insurance policy, to provide finances when an income cannot be earned, due to such instances such as an illness, accident at work or job loss.

Duncan Caesar-Gordon, head of protection at the Post Office stated that as people look to save money in the present economic downturn, in most cases the first source to be considered is their PPI policies, as it is a costly product to maintain.

He also said: “People shouldn't look to get rid of their protection altogether, 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."