The Ultimate Guide To PPI Claim

| October 10, 2012
Payment protection insurance

Payment protection insurance

PPI stands for “Payment protection insurance” and is insurance sold along with loans for houses, cars, mortgages and credit cards. At times falling behind to pay would result in extra charges and with later course of time would make it difficult to get loans from other lenders and banks.

The main purpose of PPI is the provision to repay in case the person is not able to meet the monetary obligation.

The financial circumstances would have an adverse effect if you have made lots of financial commitments and would lose job all of a sudden or fell ill. The PPI claim depends on financial condition and the amount of debt. If your spouse earns well or you have some savings done then there is no need of PPI in such a case and you could continue with repayment smoothly.

Before applying for PPI claim one needs to check for the eligibility.Inorder to make the PPI claim, one must be in permanent job. Retired people, students, house wives and self-employed people cannot opt for this.

Another reason for the claim refusal could be you withdrew the job due to excessive work load and didn’t mention it when removing the coverage. One should read terms and conditions very carefully before signing up for such PPI policies.

There are several terms that could actually benefit you in your tough times.

Check in case you already have insurance that will cover the loan or mortgage repayments if your circumstances change. For example, you might have a life insurance or illness insurance policy such as income protection insurance or insurance combined with your mortgage.

Some PPI policies will provide you with reduced payments if you already have an insurance plan that protects you against ill health.PPI usually covers the loan or any repayments for a limited span of time, mostly for a year. However, some policies will pay out for longer . The coverage amount depends on type of insurance you applied for. Generally with credit card payment protection schemes, you are covered for interest on the outstanding value. Many PPI policies pay out in blocks of 30 days.  This means that if you returned to work after 28 days, you wouldn’t get a payment.

Also take note that you do not have to sign up for PPI at the point of sale and there is no compulsion to take the cover from the loan, credit card, mortgage or finance provider. In fact a separate provider can offer you comparatively cheap and wide-ranging cover.

In case if your change your mind after signing the credentials for a PPI policy, you have a lawful right to cancel it and have any payment refunded within 14 or 30 days of taking it out, depending on the provisions of the policy. So in order to play a safe game over unpredictable changing financial situations it would be a smart decision to go for PPI Claim.

 

The Ultimate Guide ToPPI Claim

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