Premium Protection Insurance, as the name implies, is a policy that runs along side a loan in order to protect the monthly loan repayment in the event the policy holder is suffering from some eventualities that include accident, illness or unexpected job loss. Although this policy can be tailored to suit the needs of an individual that may include one or two of the above mentioned conditions. For an instance, if a self-employed individual secures this policy, the unemployment coverage may not be required.
Role of PPI during financial crisis
There are many unexpected instances that may occur in an individual’s life where the policy holder may fall sick. Due to sickness you will be unable to do your job and that in turn results in reduced pay. This makes it difficult to pay the monthly bills for the loan you owe; this is where PPI claims will take the responsibility for the loan repayment.
Similarly, if you met with an accident and you are bedridden for a long period of time. It will be difficult to meet your monthly bills. There is no need to panic as that is met through claiming your payment protection insurance that is responsible to meet the necessity.
Many people fear losing their job or facing redundancy, which will affect their financial standing. There will be overwhelming bills that have to be paid on time in order to avoid penalties and a declination of credit rating. However by claiming PPI you will not need to worry about these factors.
There are many reputed insurers who are capable of providing this policy. You just need to do a little research to obtain the best provider. Even the companies who lend credit are also most likely to sell this policy at the time of borrowing. Depending on the requirement or necessity you can choose to buy the policy. However, it is advisable to buy one as you never know what tomorrow will bring; securing oneself is always a wise decision to be made.
However, there are few things that have to be considered when buying the policy. They are,
® The cost of the policy, whether it is high or low.
® Do you possess any other means to cover the repayments?
® Is there any limitation on amount that you benefit from the claim?
® The time period of the claim is it extended to the life time of debt?
® If the time complexity after the claiming process is less or more?
® The types of instances covered in the policy.
By knowing the answers for the above mentioned questions you can choose the policy that best suits your requirement.