What Exactly is a PPI
Posted on 22. Jan, 2012 by admin in Insurance
Payment Protection Insurance can be difficult to understand. It doesn’t need to be. Payment Protection Insurance – or PPI – is simply an insurance program meant to cover your payments in the event that you cannot. It is most often sold with mortgages and allows for assistance in covering payments in the event you fall ill or are unable to work.
PPI sounds like a good thing and it certainly can be. However, it is important to realize that it should be considered voluntary – something you choose to purchase. Some loan providers are now requiring their borrowers to purchase PPI coverage as a condition of loan approval. You can file a claim if you have been wrongfully sold payment protection insurance.
The cost of the insurance itself is based on the amount of the loan. It is most often simply rolled into the monthly payment. As was stated earlier, PPI can be a good and beneficial thing. It can offer you peace of mind that an unexpected hiccup won’t throw you into financial ruin. But it is also important that you are aware of the presence of PPI within your mortgage agreement, what its monthly cost is to you and most importantly what it covers. When you find yourself needing to file PPI claims is not the time to find out that your coverage isn’t what you thought it was.