Payment Protection Insurance (PPI) – 4 Things to Know Before Buying

Payment protection insurance can be a very confusing insurance to purchase. Unlike auto insurance, there are many different kinds of PPI that cover (or don’t cover) all kinds of different things. Figuring out which policy is right for you and what your policy does or doesn’t cover can be like navigating a minefield.

These are 4 most important things you should know before you buy PPI.

1.  What Sicknesses and Diseases Are Covered
Different PPI policies will cover different kinds of illnesses. The most important thing you could do for your policy is make sure you give a full disclosure of your accurate medical history. If you don’t disclose your history accurately, you give the PPI insurer plenty of grounds to deny your claims.
Beyond that, make sure you ask specifically about claims if you have a disposition towards a certain kind of illness. For example, issues with back or spine problems are often not covered by PPI insurance plans. Likewise, issues that stem from alcohol, including liver problems, will often not be covered by PPI.
If you fall under one of the “grey areas,” you may be asked to pay extra to ensure that you can be covered for that specific ailment. If you think there’s a chance that the illness could crop up in the future, it often makes sense to pay a little extra to make sure you’re covered.
2.    Understand the Employment Conditions
Discontinuity of income is one of the most common reasons people take out PPI. However, it’s important to note that PPI doesn’t cover loss of income unless you meet very specific criteria. You need to know exactly what your PPI does and doesn’t cover, or else you risk losing your income and not being covered.
For one, it’s important to note that PPI only covers employment in full time positions. You can’t be working on a freelancer basis. You can’t be self-employed. You can’t be assigned from a temp agency. You have to be an actual employee of the firm.
If you have any kind of unusual employment contract, make sure to bring it up and check to make sure you’re covered before taking out PPI.
Also, understand under what circumstances you can claim PPI. Generally, if you leave the company, you can’t claim PPI. Also, if you’re fired from your job for misconduct, you also generally can’t claim PPI. If you’re simply laid off, you’ll usually qualify.

3.   The Price of Your Policy
Of course, one important thing to take into consideration is the cost of your policy. PPI that’s bundled into your loan by the same loan broker often won’t be the best deal you can get. It pays to do a little bit of shopping to see where you can get the best coverage.
Try to get at least three different quotes for your loan. Make sure you get the total cost with and without the policy, so you can get an accurate read on what the policy is costing you.
There are a few different ways they can charge you for PPI. They could charge you upfront, which can often be bundled into the loan. Or they can ask you to pay month to month. Make sure you understand the total cost of your policy with each of these scenarios.
Also, ask whether the monthly payments could go up in any circumstances.
4.    Payment Terms and Conditions
Make sure you know what the payout terms and conditions are for your PPI. These are some of the most important things to know.
• Repayment limit. Generally speaking, PPI will cover your missed loan payments for 12 months. However, some policies can stretch this limit up to 24 months or longer.
• What amount is covered? Some loans will cover your entire payment for the month, while others will only cover your interest. Some will make sure you meet just the minimum payment you need to pay to make sure your account isn’t delinquent.
• The waiting period. How long do you have to wait before you can begin the claims process? This is usually 30 days.
These are some of the most important things you need to know before buying PPI. Make sure you do your research and ask a lot of questions before taking out a policy.

Author Bio – Danielle Garner, works for the Payment Protection Partnership,Belfast based in Scotland. A specialist PPI claims company in Belfast . If you want to claim a mis-sold loan that still has Payment Protection Insurance, then Payment Protection Partnership,Belfast,is a good choice.

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