Know The Facts About What Is Payment Protection Insurance and Avoid Paying for Something You Don’T
Chances are if you have ever applied for a home mortgage, a personal loan, or even simply a credit card, you have been told that you have the option of purchasing something called PPI, or payment protection insurance. Butwhat is payment protection insurance? It is an insurance policy that is designed to help you make your monthly loan or credit card payments in the unfortunate event of losing your job by being made redundant, an accident that put you in hospital and unable to work, or a severe and life threatening illness. Nobody can predict the future, so this sounds like a great thing to potentially have. However, the actual practice of payment protection insurance leaves much to be desired and has created a lot of problems, especially since many people donâEUR(TM)t understand exactly what it is.
There Are Many Negative Ideas Surrounding Payment Protection Insurance Plans
Payment protection insurance plans have received a lot of negative publicity because many sales people have misrepresented the product and its policies to customers in a malicious and deliberate manner. That doesnâEUR(TM)t mean that it isnâEUR(TM)t a quality product, it just means that it is not the right product for many peopleâEUR(TM)s needs and that sales people have decided to ignore that fact. Most of the complaints are not to do with the PPI itself, but the sales techniques used when the policy was initially purchased. This includes lying about the requirements that must be met to have an eligible claim on the policy.
For example, people with part time work or who are self employed or that work on short term contracts are not eligible. People who are of retirement age are also ineligible, but this is information that people neglected to inform customers.
Other people were sold PPI policies without even knowing it had been purchased! This is because their salesperson told them that it was mandatory or that it would give them a lower interest rate or improve their chances of being approved. While others were not told at all other than what their monthly payment would be, not realizing there was another cost added on. This has led to the creation of comparison tables in the UK that will highlight exclusions of claims as well as how much the payment protection insurance coverage will cost over the life of the loan. This way customers will be able to make informed and educated decisions.
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There Are Many Negative Ideas Surrounding Payment Protection Insurance Plans
Payment protection insurance plans have received a lot of negative publicity because many sales people have misrepresented the product and its policies to customers in a malicious and deliberate manner. That doesnâEUR(TM)t mean that it isnâEUR(TM)t a quality product, it just means that it is not the right product for many peopleâEUR(TM)s needs and that sales people have decided to ignore that fact. Most of the complaints are not to do with the PPI itself, but the sales techniques used when the policy was initially purchased. This includes lying about the requirements that must be met to have an eligible claim on the policy.
For example, people with part time work or who are self employed or that work on short term contracts are not eligible. People who are of retirement age are also ineligible, but this is information that people neglected to inform customers.
Other people were sold PPI policies without even knowing it had been purchased! This is because their salesperson told them that it was mandatory or that it would give them a lower interest rate or improve their chances of being approved. While others were not told at all other than what their monthly payment would be, not realizing there was another cost added on. This has led to the creation of comparison tables in the UK that will highlight exclusions of claims as well as how much the payment protection insurance coverage will cost over the life of the loan. This way customers will be able to make informed and educated decisions.
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