What PPI Options Might You Have Bought?
Monthly, or upfront?
Payment Protection Insurance (PPI) is usually an add on to a loan or a credit agreement. With the 'normal' way of paying for it, 200-530you pay your monthly loan repayment along with an additional premium for your PPI. This might be a fixed amount or it might be proportional to the size of the loan, depending on where you bought it from.
But, there is another way to pay for the PPI and that is by including it within the cost of the loan. The PPI is calculated at the start of the loan based on the expected term and the entire amount is added to the loan. This way you are only seeing the loan repayments every month, but you are also paying interest on your PPI premiums. This is not really very ideal!
The big problem with up front payments
Worse still, if you decide to cancel you Payment Protection Insurance, whereas with the monthly payments you can just cancel the cover and stop paying the premiums, with the lump sum added to the loan if you cancel it, you are still paying for it!
Of course, you also need to look at the cover and decide if it really is beneficial for you. It is a shame that the people that are most likely to use it and make a claim are also highly likely to not be able to claim for it.
Prior knowledge can prevent a claim
The idea of Payment Protection Insurance is that if you are ill orZF-100-500 lose your job, the cover kicks in and starts to pay off your loan for you. However, if your illness is known about before you take out the cover, or you know there is a risk of losing your job at that point, then it is likely that the insurance will not pay out in the event that you need to use it.
An initial no cover period
Also, some policies have waiting periods whereby they do not immediately start to pay out when you stop working through illness or loss of work. You might find that you have to wait 12 weeks before you can claim, 12 weeks (maybe more, maybe less) in which you have to be finding the payments for the loan yourself.
Other little options
You might also find that the policy you are paying for does not cover the self employed. Not a 9L0-406problem for most people, however if you are self employed then a huge problem. The policy might also have a limited amount of time that it will pay out for, which can be an issue if you lose your employment through long term sickness.
But, there is another way to pay for the PPI and that is by including it within the cost of the loan. The PPI is calculated at the start of the loan based on the expected term and the entire amount is added to the loan. This way you are only seeing the loan repayments every month, but you are also paying interest on your PPI premiums. This is not really very ideal!
The big problem with up front payments
Worse still, if you decide to cancel you Payment Protection Insurance, whereas with the monthly payments you can just cancel the cover and stop paying the premiums, with the lump sum added to the loan if you cancel it, you are still paying for it!
Of course, you also need to look at the cover and decide if it really is beneficial for you. It is a shame that the people that are most likely to use it and make a claim are also highly likely to not be able to claim for it.
Prior knowledge can prevent a claim
The idea of Payment Protection Insurance is that if you are ill orZF-100-500 lose your job, the cover kicks in and starts to pay off your loan for you. However, if your illness is known about before you take out the cover, or you know there is a risk of losing your job at that point, then it is likely that the insurance will not pay out in the event that you need to use it.
An initial no cover period
Also, some policies have waiting periods whereby they do not immediately start to pay out when you stop working through illness or loss of work. You might find that you have to wait 12 weeks before you can claim, 12 weeks (maybe more, maybe less) in which you have to be finding the payments for the loan yourself.
Other little options
You might also find that the policy you are paying for does not cover the self employed. Not a 9L0-406problem for most people, however if you are self employed then a huge problem. The policy might also have a limited amount of time that it will pay out for, which can be an issue if you lose your employment through long term sickness.
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