Apofs | PPI Claims Information Site

Payment protection insurance, more commonly called PPI, should not be confused with other financial products that may carry a similar definition or name. Income protection insurance or mortgage protection products are kinds of PPI that offer similar benefits but are considered long term insurance policies. Payment protection insurance is more concerned about short term coverage but all of these types are designed to protect the interest and welfare of the policy holder. PPI is a type of insurance coverage designed to cover loan or credit card payments in the unfortunate event of sickness, accidents and unemployment. A typical PPI policy will help pay your monthly debt obligations if you happen to be encumbered by financial difficulties. The statistics may only remain as a number but take the fact that more than 2 million people in the UK are poised to lose their jobs or means of livelihood anytime this year then PPI may provide the much needed help while you recover from any financial difficulty.

Banks and lenders sell payment protection insurance policies along with a loan or mortgage agreement and credit card service. This is meant to reduce the risk factor involved when banks and lenders approve a loan or credit card service. Consumers are also given the chance to lessen the occurrence of repossession in terms of failure to follow monthly loan obligations. It all seems fair and rosy from the first point to the next but uncertainties loom due to the widespread mis-selling of PPI. Since the policy is sold along with a loan without the buyers knowledge, policy holders are made unaware of the presence of such a policy. It may sound weird but it does defeat the purpose of having insurance in the first place. Add to that the growing number of rejected or declined claims and people have only bad things to say about PPI.

If you have an existing loan agreement with a bank or lender, check your loan agreement papers and related documents to check the inclusion of PPI. It would also be best to contact your bank or lender directly as you might be charged a high premium for a less than satisfactory policy. Remember that payment protection insurance is not compulsory and should not deter your chances of getting approved for a loan or credit card service. In fact, banks and lenders should not push you to avail of a standard PPI. You still have the freedom to choose the type of service that you want. It is easy to avail of a separate or stand alone PPI from your favorite insurance provider. It would also help you save money as stand alone payment protection insurance policies are relatively cheaper than those included on certain loan or mortgage agreements.

The debate whether you need or PPI or not will all depend on your financial condition. Income protection insurance can be separately availed to help you pay monthly debt for loss of earnings due to sickness or accidents. Health and life insurance policies purportedly serve the same reason as all insurance policies are supposed to benefit the needs of the consumer. The choice will really depend on you and how much you are willing to pay for payment protection insurance. Research will then be your best recourse to know the kinds of payment protection insurance policies sold in the market and the different rates that insurance providers offer. Keep in mind that PPI will only cover a certain amount as stated on the agreed policy but this should not deter you from getting an appropriate PPI policy of your own. Many people are now claiming ppi refunds because they bought a payment protection plan which wasn’t suitable for their needs.