FAQs on Payment Protection Insurance

Take control over your finances. Stop getting into debts. In UK you will find number debt solutions like Administration Order, IVA, Trust Deeds or Bankruptcy. But have you heard about PPI? Here are some important FAQs on PPI that can help you to stabilise your finances.

What are the uses of PPI?

These PPI policies have been introduced to help you to make debt repayments such as mortgages, credit card loans, if you have lost your job. Your unemployment could be because of:

  • An accident or illness
  • You are suddenly unemployed and you did not expect this to happen when you took out the policy.

Can PPI vary according to the policies?

PPI can be of different types depending on policy. It is essential that you go through the policy summary you become unemployed and you did not expect this to happen when you took out the policy.

Will I be refused credit if I do not buy PPI?

No, it is not essential to take out PPI. You can never be refused credit such as loan or credit card on this ground.

Is it essential to protect my debts?

It is really important to pull the reigns of your finances. Just ask yourself how will you manage if suddenly your income came to a standstill or was reduced. Keep an account of your own financial situation as well as any other insurance cover or savings you already have.

What are the eligibilities to apply for PPI?

For PPI, you need to be within the age group of 18 to 65 years. You need to work and be a resident of UK. You must go through the policies to see what is suitable for you in case you work part-time, are self-employed or on a fixed-term contract.

Where to buy PPI from?

For a suitable PPI, you need to shop around and compare prices as well as benefits offered. You will find that some providers such as mortgage lenders will offer you PPI when you apply for a loan or credit. Apart from this, PPI can also be bought directly from brokers and insurers. Another option to buy PPI is to over the internet or over the phone.

What does the PPI cover in general?

This insurance will generally cover all your debt repayments for a fixed time period. This is generally 12 months. This insurance is done to support you in case you have an accident, fall sick or loose your job. Very often this policy also covers situation if you die.

Am I allowed to claim more than once?

For this offer, you need to go through the policy and check if you can claim again in case you return to work for a specific period of time and then lose your job, become ill or have an accident again.

What are the advantages of PPI?

PPI usually covers all your monthly payments for mortgages and loans. Even for credit cards the PPI covers the minimum monthly repayments.

What are excluded from PPI?

PPI does not cover any medical condition or ailment you know before starting the policy. PPI does not include all kinds of illness. As for unemployment, PPI will not cover if you have resigned from your job or accepted voluntary redundancy or have been removed for being guilty of any conduct in your office. PPI even limits the insurance payments. So go through the policy summary and the policy document to check exactly what is and is not covered.

How to make the claim?

For making the claim, you need to get evidence to support your claim. It can be like getting medical certificates for being signed off from work from your doctor. Fir this medical certificates, you might have to make some payments. If you are claiming due to unemployment, you need to sign a Jobseeker's Agreement and prove that you are searching for work throughout your claim period.

How to make payments for PPI?

For PPI, you will have to make premium payments every month or a single payment. This depends on the credit you have taken. In case of single payments, the cost of insurance gets added to your loan and so you will have to pay interest on both the loan and the insurance premium.