Payment protection insurance or most commonly referred to as PPI is a type of insurance policy designed to protect an individual from monthly payment of debt such as loans and credit cards. The policy will take care of the payments to the lender in behalf of the buyer in case the minimum required monthly payment is not met. While this type of insurance policy is ideally sold individually to meet the specific needs of the buyer, most banks and credit card providers sell PPI as part of a loan, mortgage, or credit card service. This has led many to believe that the PPI was missold to a certain individual as most buyers are made unaware of the presence of such a policy. People end up paying too much for PPI and will result in increased monthly payments on the loan as well.
It is easy to determine if your loan, mortgage, or credit card service comes standard with a payment protection insurance policy. Here are a few simple steps to quickly determine if you have PPI.Examine all Financial Information Credit card statements should be carefully examined each month. This will help you determine the accuracy of the stated balance and other expenses or charges incurred for the month. The credit card charges for PPI will be clearly stated on the monthly statement. Depending on the type of service or credit card that you availed, the nominal charge is usually 10 to 12 per month. The amount may seem nominal for some but will turn significant as the payments are added up.
Talk to the Lender The lender will be able to provide you with enough information regarding the inclusion of payment protection insurance to a loan, mortgage, or credit card service. Many people disregard this simple gesture and end up paying money on a policy that has not been personally availed.Similar to other insurance policies sold in the market today, payment protection insurance should be oriented towards the specific needs of an individual. The buyer should have the option to choose what kind of policy to buy, including the amount of premium payment that is required.
Remember that if you happen to have an existing health insurance at the office, you could avail of PPI at a lower premium that will help cover all your monthly obligations in the event of sickness or accidents. Take note that while PPI is designed to cover all your loan and credit card payments, most policies will not cover all your monthly payments and will only tend to pay at least 70% to 80% of your total debt. Of course, the percentage will vary depending on the type of policy purchased.
People also tend to take payment protection insurance for granted and insist that this kind of insurance is redundant to other insurance policies available in the market. When in doubt, it would be best to talk to your insurance provider regarding payment protection insurance so you could decide for yourself if this type of insurance is right for you and your needs. Diligence is required upon deciding to avail of PPI as proper research will help you get the right coverage for the right price.
There is a wealth of valuable information about payment protection insurance on books and on the Internet. It would also be best to ask around and determine which type of insurance provider gives the best value for money. It always helps to be judicious when it comes to insurance policies. In these trying times, it is best to remain vigilant when it comes to paying for various financial services. This will help you get the best policy that is right for you and your pocket.
It is easy to determine if your loan, mortgage, or credit card service comes standard with a payment protection insurance policy. Here are a few simple steps to quickly determine if you have PPI.Examine all Financial Information Credit card statements should be carefully examined each month. This will help you determine the accuracy of the stated balance and other expenses or charges incurred for the month. The credit card charges for PPI will be clearly stated on the monthly statement. Depending on the type of service or credit card that you availed, the nominal charge is usually 10 to 12 per month. The amount may seem nominal for some but will turn significant as the payments are added up.
Talk to the Lender The lender will be able to provide you with enough information regarding the inclusion of payment protection insurance to a loan, mortgage, or credit card service. Many people disregard this simple gesture and end up paying money on a policy that has not been personally availed.Similar to other insurance policies sold in the market today, payment protection insurance should be oriented towards the specific needs of an individual. The buyer should have the option to choose what kind of policy to buy, including the amount of premium payment that is required.
Remember that if you happen to have an existing health insurance at the office, you could avail of PPI at a lower premium that will help cover all your monthly obligations in the event of sickness or accidents. Take note that while PPI is designed to cover all your loan and credit card payments, most policies will not cover all your monthly payments and will only tend to pay at least 70% to 80% of your total debt. Of course, the percentage will vary depending on the type of policy purchased.
People also tend to take payment protection insurance for granted and insist that this kind of insurance is redundant to other insurance policies available in the market. When in doubt, it would be best to talk to your insurance provider regarding payment protection insurance so you could decide for yourself if this type of insurance is right for you and your needs. Diligence is required upon deciding to avail of PPI as proper research will help you get the right coverage for the right price.
There is a wealth of valuable information about payment protection insurance on books and on the Internet. It would also be best to ask around and determine which type of insurance provider gives the best value for money. It always helps to be judicious when it comes to insurance policies. In these trying times, it is best to remain vigilant when it comes to paying for various financial services. This will help you get the best policy that is right for you and your pocket.
