Common Questions Regarding Payment Protection Insurance
Getting a payment protection insurance policy is never a bad idea. It does not matter if you are getting it for a mortgage or some of your other debts. However, due to some controversies recently the sheen has been taken off slightly from this very beneficial form of debt protection program. Because of this, you might have a few questions regarding the working of this concept, which are always welcome as they only help in clearing the air. Below are some of the most-often asked questions about PPI.
Who is the Principal Beneficiary of PPI?
The answer to this is the borrower/policy holder. PPI ensures that the borrower’s repayments to all the debts he/she has accumulated are continued in the event of them losing their regular income due to any reason.
What is the Duration of the Protection?
In most of the instances, the coverage lasts for a period of 12 months in case the borrower falls ill, is injured or is left unemployed due to reasons beyond his/her control. This is one of those aspects of the policy that should be discussed thorough with your provider as it has been one of the most controversial areas when talking of miss-sold payment protection insurance policies takes place. Such policies have often failed to meet the borrower’s expectations when it comes to the PPI cover, its duration and claim requirements. Clearing this with your PPI provider helps you avoid problems in the future.
Is PPI too costly to Purchase and Maintain?
The cost of PPI is strictly dependent on the insuring company in addition to the amount of loans outstanding on the borrower’s side.
What are the Steps Associated with Filing a PPI Claim?
The first thing you need to do is to validate your claim. So if you have been through a job retrenchment at your company/organization, then the documents that corroborate the same need to be provided to the insurance company. Such a document is often issued by your company in such cases. Ideally, you should discuss all the terms for payment protection insurance claims with your insurance company before signing on the dotted line.