No, Critical Illness Insurance is not classed as PPI (Payment Protection Insurance). With PPI, the person who got the loan may pay extra for protection in case he/she loses his/her job. The PPI policy will make the loan repayments, or possibly even pay off the entire loan or mortgage if the Insured passes away.
Critical Illness Insurance will pay the Insured if he/she is diagnosed with a qualifying illness listed on the policy. This payment can be used to pay off loans or used for other expensees.
Critical Illness Insurance in the United States is not classed as PPI because the United States does not have PPI (Payment Protection Insurance), as such. While PPI is tied to a loan or mortgage, critical illness insurance is a stand alone policy that usually pays a lump sum to the insured person when diagnosed with certain serious illnesses.
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Critical Illness Insurance will pay the Insured if he/she is diagnosed with a qualifying illness listed on the policy. This payment can be used to pay off loans or used for other expensees.