Complete Know-how Of Payment Protection Cover
Payment Protection Insurance, or PPI, is also known as credit protection insurance, credit insurance, and loan repayment insurance. This is another insurance policy that helps customers to get their loans back if the borrower becomes disabled or ill, dies, faces other situations, or loses his job.
What is PPI?
Payment Protection Cover covers other circumstances, which prevent the borrower from earning his income in order to pay the debt. PPI is provided by many credit card providers and banks as an overdraft product and an add-on entity to loan. This policy also covers risk categories like credit disability, credit accident insurance, and credit life insurance. Though this policy is bought by the borrower or consumer, the benefits go to the enterprise that provided credit to the customer.
PPI Claims
PPI covers minimum loan payments for the entire period of nearly 12 months. After this duration, a borrower is expected to figure out other means to repay the debt as 12 months is considered as sufficient time to find another job. People usually confuse PPI with Income Protection Cover. PPIs need extremely careful assessment as an employee may get his pay during a notice period and still be unemployed. When a situation like this occurs, an approach is taken with regard to the unemployment benefits with respect to that of benefits agency.
Sometimes while getting a credit card or a mortgage loan, PPI is sold, which is of no use to you. While making a claim, you can also claim interest charges that the borrower has paid. In case the loan has already been paid, you can claim the entire amount along with the interest. In case the borrower at the time of PPI owes the lender money, he has the right to offset PPI refunds against debt. If any PPI amount is left over, the balance shall be returned to the PPI solicitor or the client. This income protection premium shall reflect the options that you take, with lesser cover and cheaper premiums.
Some Statistics
Insurance companies have sold over 20 million policies of this nature. Nearly 2 million applicants have claimed compensation by the policyholder. Some of the popular banks providing this compensation are Lloyds Bank, RBS, and HSBC. On the flip side, Payment protection cover faces many complaints among other such financial products.
Get more information on: Payment Protection Cover
For more information visit: Unemployment Cover
Processing your request, Please wait....
