subject: Ppi - Payment Protection Insurance Facts [print this page] 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 is short for Payment Protection Insurance. This kind of insurance was established to help cover the repayment of bills such as a mortgage loan, credit card repayment, or similar monthly loans in the event you are injured or are unable to work due to illness or due to redundancy. The PPI will cover a percentage of specific loans monthly for about twelve months and at most up to 24 months.
Before you decide on purchasing PPI you should make certain that it is well suited for you. You don't want to fall victim to a high pressured sales person or lender whom is trying to pressure you into buying their plans.
Additionally it is crucial that you know that there is quite a bit of criteria you will need to meet in case you do need to file a PPI claim. Please find some 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 weekly.
* If you are going to claim unemployment you will have needed to be employed with the same employer for a minimum of twelve months prior to making the PPI claim.
You should also be aware that some medical conditions like back issues or even stress related issues may not be covered under the PPI policy. It is best to ask about this. It would be awful if you went 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 decide that you want to purchase Payment Protection Insurance and you feel it will be beneficial for you, be sure you check prices, as it can add up from 60-65% to the total of your loan. Be wary of high pressure tactics, and watch out for poor sales practices.
by: Sharon Dawkins
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