Payment protection insurance is available to help you in the event that you cannot repay your loans. But you may not find out until you submit PPI claims that you do not have the policy you thought you had. The policies were designed to cover you if you have extended periods out of work.
There is a predetermined period of time you must be out of work or disabled, usually one to six months, before the policy will begin paying for you. It then makes your payments for up to a year.
PPI is available when you get a loan for a credit car or mortgage. Some lenders do not tell you it is optional and may hint that you have to purchase it. One of the methods unscrupulous lenders use is to give you a lower interest rate if you purchase the policy.
There are ways to avoid hidden charges. As for a printout of the repayment costs for the loan with PPI and without it. Compare the costs to find what you are really paying for. If it is built into the loan, you may be paying interest on the cost of the insurance.
One of the concerns in the use of this type of insurance is the risk that agents who receive commissions for selling it may practice deceptive selling tactics. There have been many documented instances when policies were sold to consumers when there was no real value in purchasing it.
There are very specific situations in which the insurance will pay off. If you lose your job for redundancy, you will be covered. But only for redundancy and only if you did not know it was coming. People who are self-employed cannot be considered redundant, so they cannot ever take advantage of this feature. Families with savings to cover costs or with multiple incomes are not good candidates because they can cover their debts and will never reap the benefits of the policy.
Many consumers opt for stand-alone polices that are a more affordable option, and one that may actually provide substantially more coverage. You can customize stand-alone policies to meet your needs. For example, if your employer has a plan to pay sick or injured employees, you do not need that option included in the coverage.
Churning, or charging you over and over for the same policy, is illegal. If you find this is the case, whether it is intentional or accidental, you can get your money back. You must have been told at the outset that you were purchasing the policy. If it was not made evident to you, and you did not want it, you may get your money back.
The time to find out that you do not have coverage should not occur when you submit PPI claims. Make sure you know what you are signing and be proactive in determining what you need and want.
There is a predetermined period of time you must be out of work or disabled, usually one to six months, before the policy will begin paying for you. It then makes your payments for up to a year.
PPI is available when you get a loan for a credit car or mortgage. Some lenders do not tell you it is optional and may hint that you have to purchase it. One of the methods unscrupulous lenders use is to give you a lower interest rate if you purchase the policy.
There are ways to avoid hidden charges. As for a printout of the repayment costs for the loan with PPI and without it. Compare the costs to find what you are really paying for. If it is built into the loan, you may be paying interest on the cost of the insurance.
One of the concerns in the use of this type of insurance is the risk that agents who receive commissions for selling it may practice deceptive selling tactics. There have been many documented instances when policies were sold to consumers when there was no real value in purchasing it.
There are very specific situations in which the insurance will pay off. If you lose your job for redundancy, you will be covered. But only for redundancy and only if you did not know it was coming. People who are self-employed cannot be considered redundant, so they cannot ever take advantage of this feature. Families with savings to cover costs or with multiple incomes are not good candidates because they can cover their debts and will never reap the benefits of the policy.
Many consumers opt for stand-alone polices that are a more affordable option, and one that may actually provide substantially more coverage. You can customize stand-alone policies to meet your needs. For example, if your employer has a plan to pay sick or injured employees, you do not need that option included in the coverage.
Churning, or charging you over and over for the same policy, is illegal. If you find this is the case, whether it is intentional or accidental, you can get your money back. You must have been told at the outset that you were purchasing the policy. If it was not made evident to you, and you did not want it, you may get your money back.
The time to find out that you do not have coverage should not occur when you submit PPI claims. Make sure you know what you are signing and be proactive in determining what you need and want.
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Do you feel that you've been misled by your lender? Get more info on Mis Sold PPI claims now in our super guide to all you need to know about how to use PPI Claims Calculator
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