1. When taking out any type of finance deal, you will
almost definitely be offered payment protection
insurance of some kind. This is an insurance
policy which acts as a safeguard if you fail to miss
your repayments through no fault of your own
such as losing your job or suffering from an
accident/illness. Many people have this sold to
them without understanding the potential positive
and negative/aspects by seemingly pushy
salesmen at the time they take out their loan.
ppi
2. The banks make a big chunk of their profits from PPI and reports
show that they have overcharged the UK customers around £1 4
billion which has lead to the charity Citizens Advice issuing a 'super
complaint' The claims process can at times be lengthy depending on
the issuer of the policy and you should be aware that it only covers
ppi the costs incurred from your loan
3. An expert gave advice along the lines of making sure you are aware
of what the policy offers and what alternatives are available that
could suit the same purpose Often consumers are sold these
products without gaining any understanding of what they are taking
out
4. Whereas, if they were better informed they would be able to see the
possible merits of the policy If you choose your policy unwisely you
could find it doesn't offer the value you were expecting
5. PPI can be a benefit to some as accidents do happen, as long as
you research your PPI and fully understand it, you will not have any
unexpected surprises An alternative to PPI is to save around three
to six months worth of wages in a high interest saving account which
can easily be accessed
6. This would cover you (short term) for accidental illness or job loss
This may not be as easy for everyone
7. For long term cover you may want to consider income protection
cover as, if you make a claim, it will payout until your retirement date
if terms and conditions of the policy are met You should ensure you
are aware of all the details of any you take out including the monthly
payment and interest rates applicable
8. This applies to both and and will ensure you get the most out of
your cover
