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Payment protection insurance or PPI is a means of loan protection. It is generally applicable to any loan-based instrument you have in your name like a house mortgage, a car loan or even a credit card. It protects you from payment liability should you be unable to make your installments due to illness or because of being laid off. Understanding what is PPI will help you comprehend the advantages associated with it. These policies are often sold to people whenever they take out a loan or a mortgage or have successfully applied for a credit card. The main benefit it provides you with is peace of mind. Falling seriously ill or losing your job can be stressful enough for the family. If they know that their liability for a loan has been temporarily put off, they will breathe easier. It will prevent your credit rating from taking the plunge. In terms of eligibility, most PPI policies cap age at 65 or 70 years of age. You need to be employed at the time of taking on such a policy as it covers unemployment post taking the policy. Those who are self-employed do not qualify for this. Much like medical insurance, if you already have a known medical condition, then you will not be able to take on this policy. Now you have to be extremely careful when it comes to taking on PPI covers. This is because the market is replete with organizations selling these covers to people who are not eligible for them. Often this discrepancy comes to light at the time of PPI claims. If you have an existing loan that you are paying, a PPI will, in all probability, be a part of it. Now would be a good time to look at your documents and verify all that is there. In the case of loans, the premium for the PPI will be included as part of the sum that constitutes your loan. In addition, in the case of credit cards, you will find that it is added to your current billing each month. There are chances that you have been sold a PPI policy mistakenly in the following cases - where you have not specifically asked for such cover or in the case where the loan company insisted that it was a compulsory part of the package and that it will work in securing the loan. There is also the possibility of wrongly being sold PPI when you did not know that it was optional and that it could have been acquired for a cheaper rate elsewhere. Most of all, if you happened to be retired or unemployed at the time of purchasing the cover, then you definitely bought it unnecessarily. There have also been times when premiums for PPI have been paid but at the times of claims, the person has proven ineligible. What you need to find out is the duration of the policy and the benefits that are associated with it. You will also need to ask about how long it will take a claim to start paying out. Whenever you have been handed a PPI form to fill, also be wary of boxes that seem to have been conveniently ticked off for you. There are chances that you need to look into that deeper. Actually, being eligible for PPI and reaping its benefits is a great thing if you are sure you are doing it the right way. Be careful before making your choice. If you have borrowed money from a bank or other money lender by obtaining loans, credit cards or mortgages then you will more than likely have been asked to take out PPI. For PPI claims made simple Call us on: 0800 048 8820"
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