Payment Protection Insurance
Payment Protection Insurance, commonly known by its acronym, ppi, has recently come under the publics watchful eye. The attention that it got from the discerning public has been mostly negative though, because of the recent and not-so-recent cases of mis-selling of payment protection insurance to customers who didnt have any clue what theyre getting into, leading to widespread ppi claims. But if you look at it from an unbiased perspective, payment protection insurance is never the one to blame, because it could really be very helpful, as long as you know a lot about it. Instead of blaming PPI, the ones who mis-sold the PPI, like banks, insurance agents, and other financial institutions should be held accountable and be punished accordingly. PPI, in its strictest sense, remains to be a very useful way of ensuring financial security, even as you stumble on financial problems.
Perhaps youve decided to give ppi a chance, and you believe that it will be really useful for you in the future; but before getting payment protection insurance, you need to be sure of some things first. Ask yourself, Do I really need this type of coverage? If you think that your job is greatly affected by economic shakeups that have been quite abundant as of late, getting PPI is a good decision. If there are instances when some of your co-workers got laid off, then you also need PPI just to be sure of your financial security. If you work freelance or manage your own business, then it is quite normal to make sure that you wont have financial problems in the future. PPI suits you well. Another thing to consider is the full cost of the PPI over the term of the loan. Just from the figures alone, youll know if the price is manageable or just simply outrageous. If you think that the total is outrageous, and would be a great burden for you, dont take it. Perhaps it is just a way for lenders to get more money out of their clients. You should also consider how you and your family would be impacted if you suddenly lose your employment. If your initial reaction is fear, because you feel that you cant pay your financial obligations when you are out of work because of an illness, an accident, or when you are made redundant in your previous employment, payment protection insurance is the best thing that ever happened for you. Dont hesitate to get one because it will surely help you in the future. But if you think that it matter and that it would only bring a small amount of discomfort because you have other means of living that you could fall back on, or you have saved enough money to cover for the time youre out of work, then getting payment protection insurance wont make much of a difference for you.
After you consider those aspects mentioned above, there are still some things that you need to be aware of. Make sure that you understand and you know all the insurance policy conditions, not only those mentioned by the insurance agent or the promises that he told you just to convince you to get the payment protection insurance. Double check what is covered and what is not covered by the insurance, even when you have already been briefed about it by your lender or by your insurance agent. This is to avoid confusion and to verify if everything that youve been told are all true. Always do your assignments so that you wont be mis-sold with PPI, so any attempts to trick you into taking one would be easily shut down because youre armed with the right information about this type of insurance.
Why Payment Protection Insurance Requires Thought Before Purchasing
Have you ever thought about what happens when you lose your capacity to pay the bills when disaster strikes? People who have depended on their income to settle their monthly payments may be in for the shock of their lives when they lose the capacity to keep up with their debts, uncontrollably causing them to spiral down financial difficulties. Payment protection insurance is an option you can take to pay your loans, mortgages, or credit cards at inevitable moments when you get sick, been called as redundant at work, or disabled due to an accident. Payment protection insurance is sold until today, but the question that lingers in everybody’s minds is: Is payment protection insurance really worth it?
If you’ve taken out a loan, credit card, or a mortgage, then you must have heard of payment protection insurance. If you have no idea what payment protection is, then it is advisable that you check your billing statements, for you might have it issued in your name without you knowing it. When you take out a loan or a credit card, payment protection insurance is usually bundled along with it. This gives your lending company the security it needs just in case you might not be able to keep up with your payments for a number of reasons. Some payment protection insurance policies come with a life benefit. The life benefit covers your loans and mortgages when you die, to prevent your debts from being transferred to your closest heirs. Know full well, though, that you have the right to shop around for the best price when it comes to securing payment protection insurance.
In the recent years, however, payment protection insurance has been sold wrongly to people who are not aware of the insurance itself. Payment protection insurance is sold to people who are not eligible for it, and to their disappointment, when the time comes that they have to make a claim, they are often denied. The lending company should never force you to purchase PPI or tell you that it is compulsory. You have the right to acquire PPI on an independent company, or any other company separate from where you are acquiring your loans, so don’t give in to persuasion. Also know that you have every right to know about the product you are purchasing. If you are given a fully protected loan without the company explaining in detail why and how your loan is fully protected, then you have the right to complain. You should never be issued a product that you do not know about, much more, pay for it without you knowing.
Before purchasing payment protection insurance, what you need to do first is to measure your need for it. If you do not need payment protection for you have other methods of paying off your loans should you become sick or disabled, then payment protection will be just another debt on your monthly statements. Only those who are in need of payment protection insurance find advantage in it, while those who do not study the insurance but claim it end up in an entrapment. Payment protection insurance can be very costly these days, which is why it is extremely necessary for you to know about it before signing up. If you don’t know if you have payment protection insurance, don’t hesitate to ask your lenders about it. Your lender should be able to tell you if payment protection insurance is right for you. He or she will be able to tell this by analyzing any insurance you have under your name, as well as if your company issues sick pay or disabled pay. You have the right to information, so if the insurance perplexes you, never hesitate to ask.