Tuesday, 23 October 2012

Payment Protection Insurance FAQ

Payment Protection Insurance FAQ

If you are looking into payment protection insurance (PPI) on a mortgage, whether it is regarding a claim or if you are applying for cover, then you probably have a lot of questions. With the recent uproar regarding mis-sold PPI, it is a good idea for you to do some research before taking cover as there have been thousands of cases in the past where expensive cover was sold to clients who believed that they had to have the policy. You may also just find out that PPI you have previously had may have been mis-sold to you, meaning that you may have a valid claim.

Here are some frequently asked questions which may be of assistance:

• Who benefits from payment protection insurance?

The borrower. Payment protection insurance is meant to repay the borrower's commitments to a many different types of loans, should they be in a situation where they are unable to.

• How long are you protected under the cover?

In many cases, the loan cover will pay for up to 12 months if the borrower is injured, falls ill or is involuntarily unemployed. It is highly important to discuss this topic with the institution you choose as your supplier of PPI cover, as the duration of cover and the requirements for claims have been problematic with mis-sold policies. Be sure that you are properly covered during a time of crisis and aren't piled with even more pressure.

• Is PPI costly?

The PPI cover should vary in price depending on the institution and the amount of the mortgage taken by the borrower.

• How do you make a PPI claim?

In all cases, you will have to validate your claims. For example, if you are retrenched from your job, you will need to produce the documentation provided to you by the employer. For more peace of mind, you should discuss various scenarios with the institution providing your PPI so that you are prepared for the worst - and covered for it.

If you feel that you have been mis-sold PPI insurance in the past, there are ways for you to be compensated. Discuss these matters with a reputable claims company which will gladly assist you in the matter.

By P gagauz