You may have heard about PPI or Payment Protection Insurance in the news, but not had the time to really understand what it is all about. The term Payment Protection Insurance is used to refer to an insurance plan that mostly accompanies loans, credit cards and mortgages. The main reason for the introduction of this insurance plan is to offer coverage in case one fails to fulfil their financial obligations.
Those who have a PPI policy will have their debts settled by the insurance firm in case they fail to pay their debts. Some of the debts that can be settled by the insurance providers in PPI include mortgages, rent, loans or any other debts that may have been outlined in the agreement of the individual with the insurance provider. However, it should also be noted that for the insurance to pay the debts, you must be unable to pay the debts due to illness, unemployment or any other situations of the kind. Basically it is a safety net in case you can’t make repayments.
In certain occasions, it has been established that some insurance providers fail to fulfil their commitments for PPI. It is therefore advisable that you only take out such a policy with a reputable lending institution. Also be sure to read all of the terms and conditions. When you reclaim the PPI, you will be entitled to compensation by the insurance firm. With the current advancements in technology, you are able to reclaim PPI even online at your own convenience.
Eligibility for PPI Claims
It should also be noted that PPI claims can be made by anyone who is a victim of such conditions that have been highlighted in the policy agreement. On the other hand, those who have borrowed a loan or a debt in the past ten years are also able to make claims for Payment Protection Insurance. The main reason for this is most of the loans that were borrowed in the past ten years were sold along with PPI. Remember that even after you have already settled your debts, the PPI settlement can still be applicable to you.
PPI claims can be very effective in the settlements of debts. However, it is always advisable that before acquiring it, you should make proper inquiries from the provider to ensure that you understand all the terms and conditions. This is the only way through which you are able to receive compensations against your Payment Protection Insurance.