| PPI, or Payment Protection Insurance, is a | | | | won't have to worry about how you are going |
| type of protective insurance cover that is | | | | to make repayments on your debts - instead, |
| offered with different types of finance, such | | | | you can focus on getting yourself back on |
| as credit cards, store cards, and loans. This | | | | your feet, or getting another job, whilst |
| cover is designed to cover repayments on your | | | | your insurance cover takes care of your |
| loan or card for a specified period of time | | | | repayments. |
| in the event that you are unable to work and | | | | |
| make repayments for a certain period due to | | | | However, there are some things that you |
| sickness, accident, or redundancy. | | | | should remember about payment protection |
| | | | insurance cover. This includes: |
| This type of insurance can prove invaluable | | | | |
| to borrowers, offering peace of mind and | | | | - PPI is not suited to everyone that takes |
| financial protection in the event that you | | | | out finance - for example, if you are self |
| cannot keep up with your loan and credit card | | | | employed there is little point taking out a |
| repayments. Nobody knows what fate has in | | | | policy that protect you against redundancy |
| store, and losing your job or finding | | | | because you will never be able to benefit |
| yourself unable to work for a while due to | | | | from it |
| sickness or an accident can leave you | | | | |
| financially crippled, which can make keeping | | | | - PPI is not compulsory, although some |
| up with loan and credit card repayments | | | | lenders may make it sound as though it is. It |
| impossible. Of course, if you do start | | | | is an optional form of cover, and you should |
| missing your repayments you face damaging | | | | never feel forced to take it out if you do |
| your credit as well as more severe action | | | | not wish to do so. |
| such as court proceedings - not to mention | | | | |
| the added stress and worry at an already | | | | - You do not have to take PPI from your |
| difficult time. | | | | lender. You can shop around, as the cost of |
| | | | cover can vary widely from one provider to |
| When you take out PPI your repayments will be | | | | another. Therefore, if your lender is |
| covered for a set period, which will be | | | | offering a policy that seems quite pricey but |
| specified in your policy, if you cannot work | | | | you don't want to be without this cover make |
| and make your repayments through redundancy, | | | | sure you compare different policies before |
| sickness, or an accident. This means that you | | | | you make a decision. |