Benefits of PPI: PPI claim or ‘payment protection insurance claim’ is also known as ‘credit insurance claim’ or ‘credit protection insurance’. It is a form of an insurance product that helps the consumers to insure the repayment of loans that they had taken. In many cases it has been found that the borrower has died or has lost his job or facing any other kind’s awkward circumstances which is preventing him/her to earn a stable income. It is in these cases where PPI plays a vital role by helping the borrower to repay the debt. PPI’s are widely sold by more or less all the banks in the country and also by many other private money-lending organizations.
Features of PPI: The most significant feature of PPI claim is that they can be purchased in order to insure all kinds of consumer loans which predominately includes ‘home loan’, ‘car loan’, ‘personal loan’, ‘business loan’ etc. These claims even cover the credit card policies and are considered to be an add-on facility besides the wide array of facilities that are already being provided by these kinds of claims. The policy even covers a wide array of insurance claims which predominately includes ‘credit life insurance’, ‘credit disability ‘insurance’, ‘credit accident insurance’. These policies are of immense help during any case of accident and if a person succumbs to death or becomes disable.
Policies Covered by PPI: PPI is used to cover up a wide array of insurance policies which includes ‘medical insurance’, ‘car insurance, ’home insurance’. In case any particular individual fails to pay the premium then a certain amount from the insured PPI is deducted in order to pay the premium. This will ensure that the insure policy is never lapsed.
Drawbacks of PPI: PPI claim usually covers minimum amount of lone payment for a finite time period. The time period usually varies from six to twelve months. During this period the borrower must find other modes of loan re-payment as after the interval of twelve month the claim gets lapsed. It can easily be concluded that the time period as covered by these claims are long enough because after an interval of twelve month anybody can start working again. However there is certain disadvantage of these kinds of claim, the basic drawback is that the policy is bought by the customer but the benefit goes to the company that provided the claim. These companies enjoy the profit soon after the borrower starts repaying.
Any particular individual should always keep it in mind that claiming ppi are not similar to insurance claims and they should do well to read the offer documents carefully before any kind of investment. However they turn out to be very profitable investments in most of the cases
A Guide to PPI Claim