So you are ready to purchase that big item, it may be a house, car or perhaps a renovation. Whatever it is, you are borrowing the money to finance it. You have calculated what the repayment schedule is and you know you can repay it due to you having a job. You are looking forward to this big purchase as it is something you have thought about for a long time. However, what happens along the way if for whatever reason you are unable to make those payments due to an injury or illness which would prevent you from working. Well thankfully in the UK you can order what is known as PPI or Payment Protection Insurance.
PPI is just like any other insurance which provides compensation in the event of an unfortunate accident. In this case that would be it would pay your loan repayment that you would otherwise be unable to due to illness. Many times this is offered to you when you are taking out a loan. It not, inquire about it before obtaining your loan.
While PPI can really help you out in a pinch, be sure you have read the stipulations and asked any questions you may have. Like all insurance there are many conditions. These are not necessarily over restricting their benefits, but you do need to know exactly what you are covered for and what you are not. Not all illnesses may be covered. Also don’t be afraid to just accept the PPI that the lender is offering there may be a better deal elsewhere you may want to check out. Also make sure you need it.
Before going ahead and signing on the dotted line to obtain PPI, you may want to check to see if you really need it. You may have other types of insurance that will cover you, albeit it may not be to the same extent, but it is worth it to investigate non-the less. There could be some coverage of this sort offered to you from your current employer, a mortgage may have some insurance attached or even life insurance could have something to cover you. Also, be aware that in the past some PPI was sold incorrectly. This has resulted in many people not being able to claim what they thought they were entitled to. Therefore, it is important you consult with the best ppi claim company. You want to make sure you can have full faith and be rest assured that if anything happens and you need to access your personal insurance that you are indeed covered.