Payment protection insurance is a financial vehicle that will be familiar to residents of the UK market. It’s a type of insurance that is meant to cover either loan or debt repayments if one party is not able to satisfy them. Some examples of these situations are being incapacitated, death, or not being able to work any longer due to suffering from either an accident or a sickness. It’s not uncommon to be offered or sold a PPI policy while you are taking out a loan, a mortgage, car financing, a credit card, or some other form of credit. Below is what it could mean for you.
How Does PPI Cover You?
The terms and conditions of your specific policy are what dictate both the PPI’s benefits and the way in which it specifically covers you. As a broad rule of thumb, PPI will typically cover either monthly mortgage or loan repayments – or at least a few of them – for a limited amount of time. In most cases, this period of time will stretch to 1 year, yet there are certain PPI policies that will cover you for an amount of time longer than this. Should your PPI come with life insurance, it’s usually going to pay off the balance of the debt or loan if you happen to die.
Prior to Purchasing PPI
As with any financial product, you should always do your homework before you take the bait and purchase it. This is especially true with PPI. According to the team of PPI experts at http://www.missoldppiclaimsco.co.uk, prior to purchasing, you ought to do a good amount of comparison shopping so that you can locate the specific policy that comes with features that are suitable to you. PPI policies will differ significantly, which is why familiarizing yourself with their features is so vital. A note of caution: always make it a habit to peruse the key details of the policy prior to purchasing it. Key policy details include information such as the major benefits and the features of the policy, how long its coverage lasts, and all the important exclusions or stipulations.
Don’t Be the Victim of Mis-sold PPIs
According to the Financial Ombudsman Service of the UK, over the course of its existence, PPIs have become the most complained about financial vehicle in the UK. As a result, banks in the UK have had to establish multi-billion pound provisions in order to repay people who were mis-sold PPIs. Mis-selling of PPIs has occurred when they are sold alongside mortgages, loans, and credit cards.
Payment protection insurance is a financial product that lets customers insure a repayment of a loan if the borrower, for whatever reason, isn’t able to service the debt any longer. It’s a financial product that’s sold by many banks and credit providers in the UK, but there have been problems with people being mis-sold this type of insurance. To protect yourself from becoming a victim, be certain that you understand exactly what PPI is. Then, before buying a policy, shop around and make sure you’re getting features that you need and can use.