PPI is separate insurance that is taken out for things like credit cards, car loans, mortgages and other different types of financial transactions. The primary asset of this type of insurance is to safeguard against an illness or accident. In the event the borrower becomes ill, and can’t make a monthly payment the PPI will kick in and cover the payment. With PPI it’s very important to note that certain pre diagnosed conditions like back issues, may not be covered under PPI. A person considering buy PPI should make sure that any product limitations are explained to them before signing on the dotted line. Payment protection insurance, is an insurance policy that is not required for a borrower to take out, it may be encouraged but it’s not required. PPI can cover payments generally for 12 months.
Some PPI policies will repay the entire loan without a time limit, the terms vary from policy to policy. Most PPI policies are not typically sought out by the person taking the loan. Sometimes people are not even aware that they have PPI, so one should find out if they have it. PPI polices can be a very valuable protection tool for borrowers. When a borrower makes a claim to the PPI company, in some instances the PPI sends the PPI check to the lender. For instance the mortgage company, bank, or store. At other times the PPI check many be sent to the policy holder, and it’s the borrowers responsibility to send the check on to the lender. A good way to decide if PPI would be a benefit is to perhaps ask for referrals from friends and family that have a PPI policy. Shop around for the best policy that fits your particular type of situation.
See free PPI check for more information.