Nobody knows if he or she will get ill or be laid off, during this difficult period you will not be able to pay your debts? If not, then consider enrolling for a payment protection insurance policy, mostly known as PPI, this type of insurance cover is solely made to protect you in times that you cannot meet all your financial obligations. The circumstance under which this insurance cover can come in handy is when you get ill, you are laid off or if you are involved in an accident. This article will give all that you need to know about PPI before you apply for one.
Understand how the PPI cover policy works
The payment protection insurance I a policy used to pay your entire loan if you are unable to make the payment but this only happens if your claim is accepted. The PPI policy may last for at least a year, during this time you will be able to find another job and then sort your financial problems.
Ensure that you know when PPI is the smart choice
Most consumers only take PPI to aid they financial security during difficult moments. If you are employed, and the possibility of being laid off is high then it is best if you take up the policy. The PPI will give much need time to secure a job. If you have no job, no life insurance, no alternative way to pay your debts then PPI will be your best option.
Ensure that you compare PPI policies before you pick one
Ensure that you are eligible. Then consider why you need a PPI policy and make sure that you are covered for the specific reason. The following are other things to consider:
- Length of the PPI policy- all PPI contracts last for about 12 to 24 months, so if you need a shorter policy or you want to access the funds immediately consider this.
- Deferment period-PPI doesn’t kick in immediately your claim is approved, you can wait for weeks before they chip in to cover your debts.
- Monthly cost- ensure that you do your home work properly to find if the policy will offer you financial safety or it is actually too expensive.
- Customer’s review- ensures that you read clients review on how to claim ppi or how easy it was for them to get the insurance claim. If you have doubts then contact the PPI customer service provider.
How to claim PPI policy
- Locate the policy information
If you are unable to find your contract, then contact the providers directly. Many loan buyers are not aware of the importance of the PPI policy, they do not keep the policy documents. If this happens to you ensure that you call your lender and then request for the details about you policy.Beware that time is money and getting hold of the older policy may take long than expected. The older documents are very hard to locate, this may require a minimal fee.
- Ensure that you file a claim
Now that you have you original file of the PPI policy, if you have lost your job and you want to claim for the payment of your debt, the first step to make is to:
- Determine if what lead to the loss of your job is covered by the policy. Have all the supporting documents.
- Ensure that you notify the policy provider of the intent to file for a claim Policy differs from each and every insurance provider has its own kind of policy, so the process of making a claim may differ from others. Usually, you may call, email or mail the providers. You can also fill a form on the website of the insurances providers but if you do not understand or know how to go through the process, then contact the providers directly for assistance.
- Ensure that you can prove that you have lost your source of income, and have all the documents that show the cause of your jobless.• Keep in mind that the PPI will be looking for reasons to not give you the cover so be prepared enough. Never fill for a claim if you know that you were only employed for a temporarily condition because most PPI will not give you the cover.
- Wait for the deferment time to pass
Every PPI policy have a maximum waiting time known as the deferment, during this period they will not make any payment to your loan. Most PPI provider never wants to make the payment this period is there to make them avoid the payment.
- Beware, if you get employed during this period the claim will not be paid. You will have to pay your debt by other means.