Do You Have PPI

Posted by admin on Jan 22nd, 2012 in Insurance | 0 comments

PPI – payment protection insurance – is an insurance product that is intended to protect a loan holder. Once PPI claims are filed, the insurance covers monthly payments in the event a policy holder is unable to do so due to illness, accident, death or job loss. There have been concerns that consumers may have unknowingly purchased PPI due to less than straightforward contracts from lenders.

It is important to know if you have PPI and, if you do, what the cost is and what it covers. The easiest and most accurate way to determine whether or not you have taken out payment protection insurance is simply to check your credit agreement. PPI should be stated on the agreement – called out as a separate cost.

If you have PPI on a credit card, it’s even easier to check. If you have an outstanding credit card balance, the PPI charge will show up on your monthly statements.

Some lenders have made carrying PPI a condition of loan approval and many people are unaware that they have even taken out payment protection insurance. There is obviously a cost associated with carrying the policy. It is well worth checking into whether you have a policy, whether you intended to purchase it and, if you do have a policy, exactly what it covers.