The term ppi refers to payment protection insurance, a form of guarantee intended to cover the repayment of your loan in case you are unable to do this on your own. A common reason for using ppi is when you are forced to stop working due to either a debilitating sickness or a permanent disability.
The terms covering a typical payment protection insurance or ppi tend to vary, including the benefits that you can avail of.
Nevertheless, in many cases, a ppi is extended as one of the components of your mortgage or loan agreement and even of your credit card contract. However, there are also instances when a ppi can be secured on its own to serve as loan repayment protection.
The details surrounding many ppi policies are rather unclear, however, and this is the reason a number of complaints have been received about the ppi. Normally, three different problems crop up in this regard. The first has to do with making ppi claims that are eventually turned down. In this particular case, the insurance firm responsible for managing the ppi has refused to release the funds due to a particular contract clause that the insured was unable to appreciate as this was provided in fine print.
The second issue involving payment protection insurance or ppi is that this may have been missold to the insured party, leading to ppi claims. Under this particular scenario, there are two possible reasons on how a person got covered by this particular insurance type. One, the insurer did not take the time to explain to the insured what ppi was all about. In return, the latter accepted the policy without really understanding how this can get to benefit him in the future. Two, the insured party was not made fully aware that he has purchased insurance that he may not really need. [Continue reading]