The popularity of Payment Protection Insurance is looked upon with doubt by people, mainly because of the recent complaints that have risen regarding the misselling of these plans. You might not even be aware that such a thing exists. A brief glance at what Payment Protection Insurance is about and what people are saying about it would give you a clearer picture on how to look at the matter.
What is Payment Protection Insurance?
Often referred to as PPI, this plan is considered as an add-on to any loan or purchase an individual will avail from a financial institution or a lending company. More often than not, payment protection insurance is designed to safeguard the monthly payments of the borrower in case something prevents him or her from doing so.
PPI covers you in case you are unable to work due to accident, sickness or unemployment. PPI will cover the basic amounts that are due for a maximum period of twelve months – basically a whole year.
Skepticism over Payment Protection Insurance
As discussed earlier, payment protection insurance is offered as an add-on to purchases. It may be those done with your credit card, store card, a car loan or mortgage. PPI was often sold at the same time as the credit, which meant that the borrower had insufficient time to consider whether they actually wanted to take out the policy.
Since many people feel that they were misled about this type of insurance, it is no wonder that millions of people are in line to claim compensation. You can find out if you qualify by investigating further or by contacting a reputable claims company.