Are you worried with your loans and mortgages? Are you facing a sudden financial crisis due to loss of a job, accident or injury? Have you concluded that your happy life has come to an end? No. It’s not when you make use of PPI.
PPI has developed a trend these days and it has received a positive response within a short span of time. If at all your company sacks you out and you have to bear no blame for it, or if there is any health problems, then PPI insurance helps in repaying the mortgage or the remaining loan amount that has to be paid.
However, the above explanation is a broader term. There are so many details that are to be added to it.
What exactly is PPI?
Instead of asking to yourself “Have I got PPI?” and wondering whether PPI is for you or not, here is some important information to get you started on the right foot.
To start with, PPI is known to be Payment Protection Insurance. This PPI is an insurance that covers the monthly repayments of loans and mortgages in case of sudden death, unexpected sacking of your job or accidents.
There are many who have benefitted with the help of the PPI claims. It helps the family to sail the life smoothly even in case of hardships. In order to avail this PPI, you have to pass the eligibility conditions and agree to the bank’s norms and rules.
You can learn more about PPI here: https://en.wikipedia.org/wiki/Payment_protection_insurance
Eligibility for PPI
Payment Protection Insurance is useful for many. However, there are certain eligibility conditions to be fulfilled. So, are you eligible for PPI?
Below are some of the criteria that are to be covered if you are about to apply for PPI and reclaim your PPI payments. First is if you are either self-employed, unemployed or retired that includes unemployment cover. Second is if you have any medical conditions at the time of taking the policy and the third is if you are told that PPI is compulsory.
The four major criteria that make up the eligibility of PPI are:
- Illness / Sickness
- Death
- Accident
- Unemployment
Things to Ponder for PPI
If you have satisfied the basic eligibility condition for PPI insurance, the next step you should take from your side is to see if the PPI is really important for you. Any kind of insurance is always armor against risk. However, when you are about to take a PPI, you should consider certain important facts about whether you need it or not.
Some of the important questions you should ask yourself are:
- How good you are with the mathematics and figures?
- How much is the total loan or mortgage?
- Do you really need this insurance at your current financial position?
- Do you have any backup money in case of any illness or unemployment?
- Have you already enrolled in any other related schemes?
- Ask the question, “Have I got PPI already”?
If you are about to provide answers to the above questions, you will be on the safe side to know if you need PPI or not.
About the Author:
Kathir has dedicated his career in writing financial and business blogs. The young man, within a short period of time has climbed the stairs of success in the world of writing through his compelling language and informative contents. He aims to educate people and small business owners by providing valuable financial tips which will provide benign results in their lives.