Which? approves IP as best PPI substitute

Which? has endorsed income protection (IP) as the superior alternative to payment protection insurance (PPI).

It recommends the product compared to what it calls "over priced" PPI.

The consumer watchdog has also supported the IFA community by recommending consumers to seek independent advice when buying financial products, rather than simply accepting the word of sales people.

PPI has been widely discredited while suffering a significant backlash from both regulators and the public, and being labeled as one of the top ten most useless financial products in Which?'s Money Quarterly magazine is another nail in its coffin.

According to the publication, adding PPI to a £7,500 five-year loan could cost an additional £2,000 - £3,000.

James Daley, editor-in-chief of Which? Money Quarterly, says: "Our research found that there's a bunch of financial products on the market that most people really don't need - but this doesn't stop companies from trying to sell them.

"Don't just follow what a salesman says - do your own research, speak to an independent financial adviser if you need expert help and make an informed decision about which financial products are right for you."

The organisation's full list of ten most useless products is:

• Mobile phone insurance;
• Extended warranties;
• Structured products;
• ID fraud cover;
• Payment protection insurance;
• Secured loans;
• Store cards;
• Debt management plans;
• With profits;
• Packaged accounts.