PPI–Payment protection policy pays your monthly payments of loans. It can clear your debts of store cards or credit cards when you are in certain situations like illness, job loss or redundancy. PPI policies are frequently sold by creditors at the time of loan or credit card application. The policy that is sold to right people are able to compensate on this policy while who have been bought wrong policy. Many banks and financial firms has mis-sold this policy to their customers. Most customers have cleared their loans using PPI but some people are still unaware of PPI policy.
The following are a few situations where most people have purchased wrong policy.
- Not aware that PPI was an optional.
- Thought policy will repay loans when they stop paying premiums.
- Bought this policy without having good knowledge on its limits.
You can make a claim on PPI when have met its eligibility criteria. You can also make claim if the policy sold along with mortgage, credit card or personal loan have been mis-sold to you, in such cases you can register complaint against the company and receive compensation even on interest rates you paid. Your claims can be done online, but all the info you’re providing should be correct. The average claim on PPI is $3,000.
Financial institutions use PPI to gain more profits at their customer desk. PPI policies have different names like mortgage protection, unemployment cover, accident cover and repayment cover. These policies are important to cover payments in situations like, sickness or accidents. PPI provides security and gives peace of mind. Those who fail to clear their debts, PPI claims can help in clearing debts.
PPI payments are excused from tax. Generally they pay money for certain period, which are shown in policy conditions. But it covers around 75% of your income.
Benefits of PPI:
- PPI covers more benefits to policy holders. According to PPI policy, the policy holder with age between 16 and 64 are eligible to receive compensation.
- When you met with accident and need to cover your loan payments then you can use PPI to cover them.
- This the great advantage for the people who have been disabled and are unable to work. This gives them peace of mind.
- These refunds are not chargeable. The policy holder will collect the money, which he/she paid.
PPI insurance can be obtained from any insurance agent. Credit card companies often offer PPI policy when you are borrowing the card. But it is not compulsory to accept the policy because it might not suit your requirements. Always maintain the record of PPI payments. This policy directly covers the payment of financial products such as credit and loans. To know more about PPI, research the internet. You can also find some premiums which are cheaper and suits your budget.
We can find different types of PPI’s that covers many situations. For instance long-term insurance covers the policy holder, when they are incapable to work. You can still find payment protection policy at other end. These cover your repayments on bank loans, mortgages and credit cards.
When we talk about income protection insurance, this insurance covers on all products, when the client faces loss of incomes over accident or sickness. The money paid on the insurance depends on the type of policy and will cover the specific percentage of income as mentioned. Keep in mind that every policy has its own advantages and PPI has the best advantages when compared with other policies.