All loans and mortgages should come with an automatic insurance policy to replace the discredited system of payment-protection insurance, a leading think tank will argue this week. ResPublica, a research group, will call for a system of ‘debt waivers’ under which borrowers would be freed from having to make payment on loans for a set period if they suffered a financial problem, such as losing their job. PPI policies, under which borrowers pay a regular premium for cover against such an event, have been discredited by widespread mis-selling and claims that the policies were often too difficult to claim on. Debt-waiver clauses, common in the US, are not paid for directly by the borrower, but are arranged by the lender, which agrees not to claim repayments if the borrower suffers illness or unemployment.The lender buys insurance to cover that potential cost.....Read more here