There are times when you lose job suddenly, fall sick or meet an accident and is advised long break from work. During these events when you lost your salary or monthly source of income for a long period but still have to pay your monthly mortgage payments or monthly instalments on other important loans like home loan, car loan, etc. PPI will help you pass through this difficult time.
PPI or payment protection insurance is one of the most ill famed insurance products because many of the companies were selling it out without the knowledge of the consumers by attaching it with other loan products, selling while misrepresenting the terms and conditions and so on. This is why, many of the people these days refrain from PPI but it actually is a good product if you know all about it and check all the terms and conditions and then buy it.
Here are some of the things that need to be kept in mind –
- First of all, what you need to do is check what are the features payment protection insurance you are buying has, how long it will cover your monthly financial obligations and how soon will they start the processing of paying the lenders.
- Other things that you need to ask the lender are what are the situations and predicaments covered by the PPI, will it cover you if you are self-employed and other unique terms and conditions.
- The price of the PPI also differs greatly between different PPI providers and thus, you need to compare and evaluate before you purchase PPI.
- There is no hard and fast rule that you need to buy PPI from the same issuer of the home loan, credit card or car loan. You can purchase PPI independently too.
You can be sure that you will be able to reap all its benefits if you have the basic understanding of how it works and what are its basic principles well in advance. If you already have a PPI and have not been able to use it, chances are that you were mis sold one and you can claim ppi compensation from the lender.