Payment Protection Insurance will provide you with income if you have a loan or debt repayment in the event that you are sick. This means you will be protected against any financial loss for a specific time period. You can buy this insurance with credit cards or even a store card.
How does it help?
If you unable to afford or can no longer sustain your debt repayments, then you can use your PPI. You will have all the peace of mind to know that your debt is at least being handled by a reliable third party. Taking a PPI policy will also help you to protect your credit rating. You can also opt not to have this insurance when you apply for your loan.
Where can you buy PPI?
It is not compulsory to buy the insurance cover from your lender. You can opt not to take it as long as you know that you will be able to repay the debt in the event of an accident. You will find that the premiums for PPI cover depend with the service provider, some of them are expensive than others. Since it is not an obligation to get the cover from the lender, you may need to shop around first before you can make your final selection.
Be careful when you take this policy
Be watchful and careful when you take out the policy through your lender. Some of them will not provide you with all the information about the cover and as a result, the cover that you buy may not be adequate. They will not tell you about hidden fees. If you have had problems before with your lender concerning a payment protection insurance claim, you can file your claim through Ukppiclaims.org.
What if you are self-employed
As long as you are between 18 years and 65 years, you can get PPI. If you are
self-employed, it is advisable to read though the policy. Most policies only provide cover when you have involuntarily stopped trading. If you are a contract worker, you also need to be careful about the PPI policy you choose. You do not want to pay premiums and then fail to get the cover which meets your needs. Most insurance providers will only accept a claim if you are on an annual contract and the contract has been renewed at least once. Taking PPI insurance can give you the peace of mind when you get involved in an accident. It is however important to make sure that you understand your policy so that you know what you are exactly covered for.