Payment Protection Insurance or PPI is a policy that helps people to pay back his debts if he is no longer working. That may be because of several reasons like the person might fall sick or he has lost his job.
A number of PPI or Payment Protection insurance policies are available in the market at the present times each ahs different deals. Before purchasing any policy it is always better for a person to go through all the terms and conditions and the features of the policy in detail. If he has a little confusion about anything he must ask for being sure.
People often get confused having so many options in hand and cannot decide which policy is most suitable. A proper guide can help the best in that case. Finding the answer of only few questions the task becomes easy. Let us have a look at that.
1. Should the Debt need protection?
This is the first and foremost fact to be answered. Definitely someone who is able to clear his debts on time will not go for PPI. But circumstances are different for every person. Therefore one should initially judge whether he will be able to pay out his debt even if any misfortune happens like losing job or fall in income. In such can the person is always suggested to take decision considering all his state of affairs like financial situation, other policies etc.
2. Is the person eligible to claim PPI?
Although anybody can suffer from excess debt burden but not everyone can apply for PPI. Age is a very important fact in that case. In order to apply for PPI the person must has to be over 18 years and under 65 years. He will get several schemes offered by the policy and the person should chose a suitable one on the basis of his mode of work like if whether he is self employed or engaged to some service, whether the job is full time or part time etc.
3. Where is PPI available?
Most of the time banks offer PPI with some loan or credit but other than that one can find a number of brokers as well.
4. What is a person roofed for?
The PPI policy usually covers one’s payment for a fixed time of 1 year. In case of any misfortune it covers the payment which is really helpful.
5. Can it be claimed for more than once?
It actually depends according to policy. If the person gets back to job for a certain time and ten again to the previous situation whether the policy will support depends on what policy he is acquiring.
6. How much PPI pays out:
In case of mortgage or loan the policy covers the monthly repayment while for credits it covers the minimum payment to be paid monthly.
7. Criteria for application:
One must present all the necessary and required documents with proof. A jobless person has to sign to jobseeker’s accord to show that he is looking for job in the duration of claiming.
8. What to pay for PPI:
One just needs to pay the premium only.
9. How to cancel PPI:
Although the policy can be canceled at any time a person wants but if he cancels it by 14 days of purchasing it, he will not be charged.
About The Author: Nisha is an experience writer and has been writing on different topics like small business, simple personal loans, finance and more. Currently she writes Personal Loans from Perth