Friday, June 9, 2017
Is Personal Protection Insurance Right for Your Financial Worries?
In today’s economy, fears about job loss or not having enough savings to cover the bills in case of being unable to work for any reason are common. As a result the number of individuals obtaining Personal Protection Insurance (PPI) has increased in the UK significantly.
PPI products are insurance policies that will pay your loans or credit card bills should you find yourself in a situation such that you are unable to earn income. This includes illness, injuries, accidents and loss of employment. While purchased by the individual, should a PPI claim be filed, benefits are paid directly to the company owed. Most policies cover minimum payments for a specific amount of time (usually 12 months).
While individuals who have purchased such insurance may experience a sense of security related to the possibility of unpredictable loss of wages, care should be taken when purchasing the product to make sure you are eligible for coverage. It is also crucial to ascertain that what you are assuming is included is actually covered. In recent years, it has come to light that many people were mis-sold policies and when they attempted to make a PPI claim they were informed their situation was not covered, leaving them without the means to pay their bills.
Thousands of people a day in the UK are discovering when attempting to make PPI claims that situations that they assumed were included in their policy were not covered due to either personal ineligibility or inadequate coverage. There are a number of ways people may be taken advantage of when purchasing PPI insurance that they don’t become aware of until making a PPI claim. Be sure you are aware of the following relevant criteria related to PPI eligibility:
• PPI is always voluntary – it is not mandatory to purchase PPI products when applying for a loan, credit card or mortgage.
• Not everyone can purchase PPI – Students, pensioners or those who are self-employed are generally not eligible for PPI coverage.
• Conditions existing when sold the coverage effects eligibility – Those who are unemployed, have a pre-existing medical condition or are working less than 16 hours a week when they purchase PPI products are not eligible for coverage.
• PPI may already be included - PPI payments may be embedded in your loan or credit card contract without your knowledge, in which case additional insurance is not necessary.
The High Court has established new rules increasing the number of people who can file PPI complaints. These rules also require Banks to contact all PPI customers to inform them that they may have been mis-sold their insurance and could be eligible for compensation. The amount of compensation awarded depends on the cost of your policy and how long you’ve been paying for your coverage.
Individuals can obtain information through the PPI Claim Company as to how to file complaints themselves. In addition, many companies offer a no win - no fee contract which requires that you are awarded a certain amount of compensation or else the services the company provided to file your complaint are free.
Make sure to always read the fine print of any PPI policy you intend to buy and don’t sign until another knowledgeable party has reviewed it for possible problems regarding your ability to file a PPI claim should circumstances warrant it.