PPI can save you from losing the roof over your head. It can also stop you from earning a County Court Judgement and stop your credit rating from dropping. You can take out mortgage payment protection, loan or income payment protection depending on your needs. All policies are cheaper when you go with a standalone payment protection specialist rather than taking out the protection alongside the borrowing. High street lenders are known to charge way over the odds for the cover. You also get access to all the information needed to ensure that a policy is suitable for your needs.
PPI can be taken if you have a mortgage to keep up with and do not want the worry of where to find the money if you were to lose your job to redundancy, fall ill or have an accident. With a policy behind you there would be an income tax-free with which to pay your mortgage each month. As it is essential not to get behind on the repayments of the mortgage it makes a lot of sense to have a reliable back up plan. State benefits might provide you with some form of income but it would only be towards the interest part of the mortgage and then only up to a certain amount. You would also have to eligible to claim and could have to wait several months before seeing any money at all. Savings could also fall short and soon run dry if you had to rely on them for many months.
You can also take out payment protection to cover any loan repayments you might have each month. This would also apply to credit card repayments. You would take out loan payment protection for a premium based on how much you have to pay out and your age and then receive this sum back.
If you wanted to insure up to a certain amount of your own income each month then income payment protection could be the answer. You would then have a sum of money each month that would help to pay your loan and mortgage payments along with all the other bills that you have to keep up with.
All forms of PPI taken with a standalone specialist provider would last for so long as stated in the terms and conditions. You would also have to wait a period of time before you would be able to put in a claim. Some providers state 30 days while with others it could be 90 days. Policies generally last for between 12 months and 24 months and provide a payment each month and then cease. Some providers would also backdate their cover to the first day of your unemployment or incapacity but you have to check the key facts supplied on their website before buying. Of course as with all insurance policies there are conditions which you have to check before buying and providing you have done this you are then assured of a reliable safety net which you are able to fall back on.
Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of PPI. |
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