What PPI Is and What It Is Not

Posted by admin on Jan 22nd, 2012 in Insurance | 0 comments

Payment Protection Insurance – or PPI – is insurance on a loan. Simply put, a PPI policy is in place to cover your loan payments if circumstances such as illness or job loss don’t allow you to cover them yourself. Although there are many positives to having PPI, there are also many things to be aware of.

It is imperative that you know exactly what is covered under your PPI policy. Several well-known lenders exclude common problems that prevent people from working, including mental illness and chronic back pain. Some PPI policies have age limits and many do not cover people who are self-employed. If you decide to take out a PPI policy against a mortgage or car loan, make sure you have a clear understanding of what is and is not covered. If you need to make a claim, get answers from PPI experts and specialists.

In addition to coverage, it is also important to understand the amount of benefits you would be entitled to and the time period over which those benefits would be paid. You will find that some policies stop payments after one year. When making PPI claims, many loan holders have been surprised to find that the amount of money paid out of their policy was not enough to keep them free from debt. This is especially true for credit card debt.