Payment protection insurance (PPI) is a type of insurance offered to you for covering your loan repayments during any unforeseen situation that includes, unemployment, serious sickness, death or other circumstances that may prevent you from earning money and honoring your credit arrangements.
It should not be confused with income protection insurance that covers any type of income. To find out more about PPI including claims visit http://ppiclaimsfacility.co.uk. PPI is widely offered by banks, building societies and other lending organizations as an add-on to your original loan facility. It is intended to provide an option to you for continuing to honor your credit obligations and financial bills during phases of hardship thereby ensuring peace of mind. It also ensures your standings with various credit bureaus remain good.
You can purchase this type of credit insurance to take care of repayments for all types of loans that include consumer loan, car loan, house loan, personal loans etc. Usually your credit card agreements come with a form of PPI as standard options. In case it is not offered by default, you can opt to avail this facility directly from your credit card provider or a different insurance institution.
Even though you buy the policy for yourself, you are not the only one to benefit from it. The financial institution that actually provided you with credit becomes the actual beneficiary as their money becomes secured and repayment almost guaranteed. Most PPI policies cover only your minimum dues every month for a period of usually 6-12 months. It provides you with a sufficient amount of time to start earning again and service your debt.
However, it is important to evaluate whether a PPI policy is the correct option for you. If you have already purchased a PPI policy but are not sure you need it, then you may be a victim of cunning sales tactics employed by various organizations. For further information, visit the website ppiclaimsfacility.co.uk.
Click here for more information ppi calculator