Payment Protection Policy, How Beneficial Is It?

By Author: Shourya Ray Chaudhuri
Total Articles: 598
Comment this article

All would agree that the greatest problem that most people are facing today is the repayment of loans and over draft fees. Paying for maintenance of homes, taxes, loans and insurance and meeting the necessities of daily life are all common problems of most people. Well, how to manage these monetary issues? Today, this is the most common challenge faced by most people as the world is affected by economic recession. These issues are not within the reach of an individual as the cost of maintenance, market rates of commodities and interest rates are so high.

Most people who are down with this sort of financial constraint have one solution to their problems-Payment Protection Policy. It is framed keeping in mind those who need to make repayments and are unable to do so as a result of their sickness or accident. It is a policy which is quite different mainly devised to help the borrower. Thus you need to pay a little extra and it will take care of you during your bad days.

This Payment Protection Policy is also called loan payment protection of PPI. It mainly looks into repayment of debts at the time when borrowers ...
... are made redundant or are unable to work due to personal reasons like sickness or accident. It usually pays out after a deferred period of three months or from one year to two years as well as when you are unable to work.

These policy providers who are keen on helping people on a stand alone basis and this works out much cheaper than the cover debit provided by the bank of any money lenders. You need to be aware of the terms and conditions given in the policy to know how far it meets your requirements. You can also save a great deal on this policy by choosing coverage against sickness and accident without an unemployment protection facility. Remember it is always wise to check with your employer before deciding on the Payment Protection Policy as there are providers that pay for a certain period of time to those unable to work. This will help you from saving the extra money which you need for coverage that is not required.

But lately there was many issues regarding Payment Protection Policy for all the wrong reasons. It was said that many people complained of wrong practices where the providers are including the cost of these policies in the accompanying credit amount. So the people felt cheated as they were forced to pay extra interest on premium and as per the contract none had the right to cancel the policy or to claim a refund. But this matter was resolved with the help of Financial Services Authority and now the lenders are not allowed to sell Payment Protection Policy at the time of selling their credit products.

Shourya Ray Chaudhuri, Ezine Articles Expert Author.For more information: Payment Protection Policy
Get more information: Redundancy Protection Insurance