Payment protection insurance (PPI) is a form of insurance that helps a person make their payments even if they lose their source of income for some reason. It is a short-term measure meant to help people keep paying their debt even if they lose their job or fall ill. PPI is most commonly used to help with things like mortgage, loan or credit card payments.
However, the problem with PPI is that it sometimes isn't stated clearly enough that you will be paying that too when you're setting up some service with a bank, for example. This can then lead to more expenses than planned for the client. So, be careful what you're signing, but even if you do find yourself in a situation like this, there is a solution to your problems.
Payment protection insurance claims
If you feel you were, well, tricked into buying payment protection insurance, you should seek legal help. Many law firms, like Optimal Solicitors, specialize in handling this exact type of claims, and they will tell you exactly what you need to do, what you can expect and how to reach your goal.
Having an expert like that available can be especially helpful if you don't have your original documents for some reason and want to determine whether or not you've paid the PPI in the first place. They will issue a request on your behalf to your lender and get all the necessary information.
In some cases, people have been sold PPI even though they weren't even eligible for it, so some caution is very much advised when entering a long-term financial commitment.
What does payment protection insurance cover?
As stated, this insurance is meant to help you overcome short-term financial difficulties. Illnesses, accidents and losing your job are most commonly covered by your policy, but there are options that allow you to activate this insurance if for some other reason you've become unable to work. Even in the case of death, your debts can still be paid, which can be very helpful to a grieving family.
On the other hand, certain illnesses are not covered, so you should inform yourself on that before you decide to buy this insurance. Furthermore, the insurance can't be used for pre-existing conditions either, and the same goes for retired or already unemployed people.
Do I need the PPI?
As is the case with any insurance, PPI certainly has its upsides, and it can be quite useful if your job isn't very secure anymore but you still have payments to make. That breath this allows you to take can be crucial for you and your family.
So the problem with PPI isn't whether it's useful or not, it's how you acquire it. Many people get it without knowing what they're getting themselves into or without knowing they're getting it at all, and that's the greatest danger with this particular product. If you can get access to all relevant information before you sign the papers, it's just as good of insurance as any other.
Share This Post
