Payment Protection Insurance Guide Online

When taking out a large loan, particularly a mortgage or other type that means thousands of dollars over several years, you may also include payment protection insurance to help you cover your bills when you cannot pay them. Today, many thousands of people get payment protection insurance as added peace of mind when covering their payments.

What is Payment Protection Insurance?

Essentially, payment protection insurance or PPI as it is often referred, is a built-in back up when you are unable to make your loan payment. Consider that most loan payment plans are based on your salary and expenses. This assumes that you will get paid on a regular basis and make your payments. For most people, they never have any problems serious enough to miss work, but for some an unexpected event such as an accident, unexpected medical bills, becoming unemployed or a death in the family diverts their income away from their loan payment in order to cover this new need.

That’s where payment protection insurance comes in, to help you meet your loan payments in case you cannot. Payment protection insurance is in many cases included into your loan payment so you are paying the premiums each month as well as paying off your loan. If for the reasons that are covered under your payment protection plan you cannot cover your loan payment, the payment protection insurance kicks in and will pay your loan for up to a year until you can start making payments again.

Is payment protection insurance expensive?

Due to the great number of banks and other financial lending institutions that provide payment protection insurance, the rates are actually fairly low and competitive. Given that most people will not make a claim against the PPI and that means the rates themselves should be reasonably low. It also should be fitted to the size of your loan as well, so your payments will vary depending on the size and length of your overall loan in total.

Is payment protection insurance needed for all loans?

Actually, the answer is no. Only certain types of loans are required to have payment protection insurance. For the past few years, the newspapers have been filled with stories of thousands of people who were either sold payment protection insurance that they did not need or were charged rates far higher than the national average. Despite numerous laws and protections that have been put in over the years, it was only in 2011 that new payment protection insurance policies were uniformed and avoided the most egregious overcharges or misrepresentations.

How can I find out if my payment protection insurance was really needed for my loan?

The first step if you suspect you are either overpaying or were sold a payment protection insurance that you did not need is to contact the trained professionals who have worked with thousands of clients in getting their money back.  Be sure to take your PPI policy to those who have years of experience with filing good claims against overpayment or misrepresentation. You have nothing to lose but the money you have already spent, find out today if you were overcharged or wrongly sold a PPI policy today.