Advantages of Payment Protection Insurance
Payment protection insurance is a type of insurance that is designed to protect the welfare of the policy holder. PPI is a type of insurance policy designed to meet the monthly payment obligations of the buyer, provided that the conditions and regulations are met. Payment protection insurance does have a lot of advantages especially in the fiscal crisis of today as this gives consumers a safety net during times of sickness or unemployment. The recent scandal surrounding PPI is the widespread mis-selling of policies that are accompanied by a loan, mortgage o credit card service. Vigilant consumers were quick to state that PPI was unknowingly included and sold along with the approval of a loan. This issue, along with a host of other factors such as the high premium rates and the growing number of denied PPI claims, managed to give payment protection insurance a bad name.
The advantages are definitely worth the premium payments for some, but how will you know if you are actually paying too much for a PPI policy? It would then be best to avail of a stand alone or separate PPI policy from your favorite insurance policy provider. Take note that prices may vary depending on location and name of the insurance provider but if PPI is sold along with other financial products or service then consumers are definitely left in the dark when it comes to rules and regulations surrounding PPI. The solution would then be to contact the bank or lender and make a thorough inquiry regarding the inclusion of PPI to any existing loan or mortgage policy that you have. If you happen to have a credit card (or multiple credit cards for some) then checking your monthly billing statements will give you an idea on how much you are paying for PPI. When in doubt, it would be best to call your credit card provider for additional insight about PPI.
Payment protection insurance policies are intended to protect the welfare of the consumer by shouldering the monthly loan and credit card payments incurred in the event of sickness, accidents, unemployment or death. Remember that some rules may actually apply depending on the type of policy holder and the application for PPI might be denied if you happen to be self employed. Insurance providers still have a risk factor to consider when screening applicants for qualification. One of the most important benefits of having PPI is that it will give you peace of mind in times of financial need and will help ease the burden when spare cash is not available. Payment protection insurance will also give you leverage while you recover from any personal or financial condition as you can use your spare money to pay for other related expenses, not only the monthly bills. This alone should be reason enough for people to consider having PPI.
The safe way is usually the best way to navigate life. However boring the topic may sound, it never hurts to be on the safe side especially when you and your family's welfare are at stake. The PPI controversy should not be a valid reason to disregard the importance of PPI. It would be helpful to know that PPI can be integrated to any health or life insurance policy but this would all depend with your insurance provider. From this moment on, it would be for the best if a little time is spent reading loan application agreements and other related documents to check for PPI. Remember that PPI is not compulsory as what others might claim and not getting payment protection insurance with any existing loan should not be a hindrance for being accepted to any loan application.