subject: Some Facts On Payment Protection Insurance [print this page] Some Facts On Payment Protection Insurance
by Sharon Dawkins
Many if not all loan seekers might be concerned about what they would do should they become unable to work because of injury, illness or if their position at your place of employment becomes redundant. There is actually something called PPI which was instituted for these situations.
The abbreviation PPI represents Payment Protection Insurance. This kind of insurance was created to help cover costs of bills such as a mortgage loan, credit card repayment, or similar monthly loans if you ever are injured or are not able to work due to illness or as a result of redundancy. The PPI will cover a percentage of specific loans monthly for up to twelve months and at most up to twenty-four months.
Before you decide on purchasing PPI ensure that it is compatible with your situation. You don't want to become victim to a high pressured sales associate or lender whom is attempting to push you into buying their plans.
Additionally it is essential that you know that there is a large amount of criteria you will need to meet in case you do need to file a PPI claim. Please find a few of these below:
* Make certain you list any pre-existing medical conditions. Several companies will not even sell you the PPI once they are aware of them. Better to know upfront.
* Your age must be between 18 and 65.
* You must work at least sixteen hours per week.
* If you are going to claim unemployment you will have needed to be employed with the same employer for a minimum of 1 year prior to making the PPI claim.
It is also important that you know that some medical conditions such as back issues or even stress related issues may not be covered under the PPI policy. Be sure to ask this. You would hate to need to file a claim and then discover you would not be covered.
There has been a large amount of problems over the years with loan companies attempting to pressure would-be borrowers into buying overly priced payment protection insurance from them. They sometimes have promised lower rates, or stated that if the borrower did not purchase the PPI then they might be denied the credit. This is something for another article, however, this is now termed mis-sold PPI, which in the event you fell victim you might be able to reclaim some money back.
If you want to purchase Payment Protection Insurance and you feel it will be beneficial for you, make sure you check prices, as it may add up from 60-65% to the total of the loan. Be wary of high pressure tactics, and watch out for poor sales practices.
Some Facts On Payment Protection Insurance
By: Sharon Dawkins
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