Payment protection insurance is an insurance product which helps you in paying the monthly loan and credit card liabilities even if your regular source of income has stopped temporarily due to reasons like an accident, unemployment, sickness and so on. These reasons can handicap a person financially and cripple his financial situation in many ways. If you have payment protection insurance, you will not have to worry about how you will pay your mortgage or loan instalments on time as PPI issuer will take care of it on time. This will also ensure that your credit ratings do not erode itself during the time you are getting back up on your feet and stabilizing your financial condition.
Some of the benefits of PPI are –
- PPI would help you pay for the financial obligations in case of job loss, financial emergency, illness, loss in business, or for any other reasons.
- PPI coverage would ensure that your credit score remains stable and does not get into negative in the meantime, when you are unable to pay the instalment for the particular line of credit it is attached to.
- PPI would ensure that your debit does not pile up, and this is one of the biggest reasons why people chose PPI. It would ensure that you do not have to pay for interest, penalty fees, and other charges that are added when you miss paying for the instalment.
- PPI would help you buy time to get back on your feet and get your finances in the order.
Payment protection insurance has been in the news lately for all the wrong reasons because even though the product might be invaluable for many, it has been misinterpreted by the sales persons and advisors to force sell the product to the consumers. Thus, people who were mis-sold PPI for all the wrong reasons are being now penalized and have to repay to the consumers who are filing PPI claims. It is very necessary that you take the help of a professional company to file your PPI claim as they would know how to go about it in a professional manner, ensuring success in the end. However, with all that said, it can be said it is was actually a good policy that was structured and marketed unethically.