Archive for the ‘PPI’

Payment protection insurance (PPI) is a generic term that is used to describe loan payment protection insurance; mortgage payment protection insurance (MPPI); and income payment protection insurance. All three of these protection policies can be taken out for a premium each month and will help safeguard against the financial ramifications of becoming unable to work due to recovering from an injury or prolonged sickness that sees a loss of income; or, unemployment via redundancy.

All types of PPI policies will give the policyholder a monthly income that is tax-free and which can be used to service specific debts (such as a loan or mortgage) or general day to day costs (in this case, income payment protection could be ideal). There is a waiting period before a claim can be made and that is usually between 30 and 90 days after becoming unemployed or unfit for work.

Some payment cover providers will back pay the insurance claim to the very first day of becoming unemployed or unfit for work, so look out for this feature when choosing your cover. Once you have started to receive the policy benefits, it would then continue to provide financial security and peace of mind for between 12 and 24 months. Obviously, if you get back to work within this period, then the benefits will stop paying out.

The cost of the PPI cover will typically be based on how old you are at the time of applying for the insurance as well as what level of protection you want (eg accident and sickness only; unemployment cover only; or all three). However, this can vary greatly depending on where you buy the insurance. The cheapest quotes are typically given with a specialist standalone provider of payment protection such as British Insurance. At the other end of the scale, historically, the high street banks and lenders will usually offer the dearest quotes.

So is PPI a consideration for you? Consider how much your outgoings are every month and ask yourself what would happen if you were to lose your income. How would you manage to carry on staying financially afloat? Payment protection insurance could be the solution, providing an income to replace your lost one, up to a certain amount. You would still be able to continue paying essential bills without financial worry and stress.

If you have taken a loan, mortgage or credit card out then the chances are that you would have been asked if you wanted PPI otherwise known as payment protection insurance. In some cases it could have been added into the borrowing without you really knowing what it involved. You could have simply been told it would cover your repayments if you lost your income. This however is usually the dearest way of taking cover and there are certain factors that would have to be taken into account which should have been mentioned to you. However more often than not there is no mention of them.

PPI can be a very worthwhile form of insurance to take out if it is suitable. It would protect an amount of your loan, mortgage or income depending on the policy you chose. You would agree a sum of your monthly loan, or mortgage repayments or your monthly income against accident, sickness and unemployment. If you suffered from one of the events insured against, you receive the amount insured back each month as a tax free income.

The sum of money would be very welcome during unemployment or incapacity. You could use it towards your choice of repayments to help you to keep your head above water while you searched for work or recovered. There would be a period of deferment period which is the time you would have to unemployed or incapacitated. This would differ on the provider, if you looked at cover with leading payment provider British Insurance you would be eligible to claim on your insurance from the 30th day. You would then have 12 months of income to rely on which would be tax free and which provide you with time to find for work or to make a recovery. You could also save up to 40% on mortgage cover and 80% on loan payment protection.

It is always worth shopping around and comparing the cost of PPI so that you ensure you get the best deal possible. However there are more than the premiums to take into account, you also have to check the small print. If you choose British Insurance for a quote you would be given the key facts of their cover which makes deciding suitability easier. It is essential that you check the terms of the policy as it would tell you when it would payout as this can vary. It would also tell you for how long as some would ask a deferment period of 90 days and others could provide an income for 24 months. You would also need to check for exclusions that apply as these too can vary with ethical independent provider British Insurance adding in just the most commonly found exclusions.

To some people it is a confusing and potentially costly insurance policy, to others it is a safety net to be used in times of a crisis. Then are some people do not know what PPI stands for at all. Payment protection insurance, to give it its full name, is a genre of insurance which features policies designed to help someone continue to repay their debts and other financial commitments if their income is suddenly snatched from them unpredictably.

To qualify for a successful claim a person will need to have lost their income through long-term illness, injury following an accident, or involuntary redundancy. This type of insurance is often used to protect things like loans and mortgages and it may be sold at ‘point of sale’, ie, by the lender at the time they supply the loan itself, although, as we will see, it is available from other types of company.

In exchange for a regular premium, an insurer will supply a payment protection policy which will provide cash payments to someone on a monthly basis to help them with their debt. How much someone gets depends on the level of cover they select. For example, someone may choose to insure some or all of their monthly mortgage repayments. When it comes to loans, a provider might meet the minimum repayment each month, or alternatively a percentage of the outstanding debt, say, 10 per cent.

First payments typically arrive around one month after a successful claim, and some companies will backdate their payments to the first day someone was without an income. It is important to check with the provider concerned to see what their position on this is.

Policies will continue to pay out for a few months up to a maximum of around two years, with the main benefits being someone is likely to find it easier to protect their credit rating and continue to meet their commitments while out of action.

PPI has attracted some negative publicity after some companies were found guilty of selling policies to people who did not need them or who did not qualify for them, IE they were self employed. All those who were fined were big-name high street brands, but the market stretches much further than these companies.

PPI is also available from smaller more independent firms who do not sell loans and who merely specialise in cover. They may be able to get someone a better deal. An example is the ethical British Insurance which has a different approach to commission for its employees, meaning in some cases it can save consumers up to 80 per cent in premiums on loan insurance and 40 per cent on mortgage protection.

PPI - also known as payment protection insurance - is a family of insurance policies that can be taken out to protect your repayments against the possibility that you could fall sick, suffer an accident or become unemployed as the result of such as redundancy. You can choose from protecting your loan repayments with loan payment protection, mortgage repayments with mortgage cover and your essential outgoings in general with income payment protection.

A PPI policy is secured by deciding how much of your loan, mortgage repayments or income you want to insure, up to the amount specified by the provider. All providers will put a limit on this so you need to check in the terms of the policy to find this out before taking on the protection. The amount chosen to insure would be the sum you would get back each month if you became a victim to one of the events insured against.

For example if you had chosen to insure the maximum set out by the provider of your monthly income with income protection, you would get this sum back as a tax free payment each month after the deferment period for the term of the policy. The money would then be used towards servicing any payments that came into the home and could be used for anything you wished to keep you and your family comfortable.

If you are worried about how you would maintain your mortgage repayments if you lost your income you could take out mortgage payment protection. This sum of money would provide you with money towards the mortgage repayment you make each month and so go towards ensuring you would not fall into arrears with your repayments. Mortgage arrears of a couple of months and no hope of catching up can mean you could be evicted from your home.

Loan repayments covered with loan payment protection secure your monthly loan outgoings which also stop your credit rating from being affected. A bad credit score can mean obtaining credit of any kind in the future would be almost impossible.

PPI would usually be offered to you at the time of borrowing. However this is often one of the dearest ways of getting a policy. If you choose to take out protection independently of the loan, mortgage or credit card you can save up to 80% on loan protection and 40% on mortgage cover if you take your cover with ethical leading specialist British Insurance.

British Insurance only sell PPI products and the products are sold by qualified staff. They backdate their protection to day one of you falling sick, suffering accident or redundancy and you can claim from the 30th day. When taking out protection you can choose between covering your repayments for either 12 or 24 months and after this time the protection expires. You would have to check the terms offered by the provider to see what exclusions there are, British Insurance add in just the basic few and they supply you with information to check them against your circumstances.

PPI otherwise known as payment protection insurance would provide payment security for your loan, mortgage or essential repayments each month for the term of the policy. You insure an amount of your income which the provider pre-agrees at the time of taking out the cover, or a portion of your mortgage or loan repayments against accident, sickness and unemployment which meant you are unable to work. If you then suffer from one of these events you would be able to claim back the sum that you insured and use the money towards the repayments you had chosen to protect.

Payment protection insurance can be taken alongside the loan or mortgage at the time of borrowing. However you would save some money if you chose to search for the policy yourself online. By taking a quote for loan payment protection with independent payment protection provider British Insurance you would save as much as 80%. If you chose to take mortgage cover then you could save as much as 40%. You would also be assured of getting cover that would come with just a few exclusions and which is dated back to the first day of you being made redundant or from being unable to work.

You could put in your claim on PPI with ethical British Insurance after 30 days and then relax for 12 months and concentrate on making a recovery or finding work again. If you chose to look with other independent providers you would need to read the small print of their policy as some providers could ask you wait for up to 90 days before you make a claim. You could also claim benefit for up to 24 months with some providers but again you would have to check the terms and conditions.

Being able to maintain your mortgage repayments is imperative if you are not to fall behind on the payments and risk having your home repossessed by your mortgage lender. Mortgage lenders will usually help you to catch up on the missed payments by allowing you to come to an agreement with them. However if you have not got an income coming into the home this would be impossible so the lender would have no choice but to start proceedings against you. A policy could help to stop these events from happening.

Loan cover would provide an income towards you continuing servicing your loan repayments. It could stop you from falling behind on the repayments and by doing so it would protect your credit rating. It is essential that you do keep your credit rating in good order as this is what all lenders take a look at when deciding if they are going to approve your application. Income cover taken as PPI would go towards you maintaining all of your essential outgoings and could be used for any bills that come into your home each month.

It might seem like a fairly pointless phrase in a jungle of insurance-related jargon, but behind the phrase PPI is a potentially valuable form of cover for anyone who is worried about their ability to keep up with debt in the face of a financial crisis.

PPI is a term commonly used by people connected with the financial insurance industry and simply stands for payment protection insurance. This is a rather broad term for a number of policies which provide cash payments to people should they start to struggle with a range of financial commitments due to losing their income through no fault of their own.

Usually targeted at anyone between 18 and 65, payment protection is designed to help out if someone finds their salary disappears due to a long-term illness, injury following an accident, or involuntary redundancy. The sector is borne out of the fact that the state benefits system in the UK is broadly meaningless when it comes to providing enough money for things like mortgages and loan bills.

There are three common types of insurance which come underneath the term. They are mortgage payment protection, loan payment protection, and income payment protection. All do very similar jobs but are geared at different debts such as a mortgage for mortgage payment protection, specific loans for loan payment, and general commitments, covered by income protection.

Although broadly far more generous than the state benefit system, this type of insurance will rarely cover 100 per cent of someone’s income or mortgage payment. Most types of cover are designed to simply give someone a significant helping hand so they can concentrate on recovery or job hunting.

Most insurers provide policies which pay out for between 12 and 24 months, and initial payments will not normally arrive until a one month period after the first claim-although some companies will backdate payments.

When it comes to shopping around for a policy, a consumer might want to consider some independent standalone firms, rather than simply concentrating on high street insurance companies and any cover which is offered as part of a loan by a lender or bank - this type of policy can sometimes be overly expensive.

Simon Burgess is managing director of independent payment protection provider British Insurance. He said: “Our policy towards commissions means we are one of the market ‘good guys’ who can provide cover at a good price without cutting out any benefits as a result. When bought from the right provider, a good value policy can provide something to fall back on when a salary suddenly disappears.”

Shopping around away from the high street could therefore see someone land peace of mind at a bargain price. In some cases an inexpensive and straightforward PPI policy could be the difference between carrying on virtually as normal or facing a queue of creditors at the front door.

When you take out PPI, otherwise known as payment protection insurance, you are insuring your repayments against the possibility that you could lose your income to accident, sickness or unemployment. You can take a policy in the form of mortgage, loan or income protection. You choose the amount of your mortgage or loan repayments, or a portion of your income that you want to protect, up to a pre-agreed sum. This sum of money would then be claimed back if you suffered from unemployment or incapacity, for the term of the policy and you would get it back tax-free.

Mortgage payment protection insurance can be a valuable source of payment protection because it can make the difference between you not having enough money to continue meeting the repayments of the mortgage and being able to service the payment when it was due. If you want security of knowing that if you were to become a victim of unemployment or incapacity you would not be at risk of repossession then you should consider suitability of mortgage payment protection.

You could choose to protect loan repayments with loan payment protection and along with ensuring you would be able to service the repayments you would also have security of knowing your credit rating was not going to be affected. This is one of the main things that are taken into account when you apply for credit of any kind and if your rating is poor you could be turned down or have to pay a higher rate of interest for the borrowing.

Income payment protection could provide you with the money to continue servicing all of the essential outgoings that are needed to keep the home running and your family happy. This protection could mean you would not have to make changes to your lifestyle or worry about what bills to try and put off until later.

All forms of PPI are cheaper if you choose to shop around with specialist payment protection providers. If you want to save as much as 40% on covering the mortgage repayments and 80% on loan cover then take a look at the protection that leading payment protection provider British Insurance offers. You would also get cover with just a few exclusions and British Insurance supply you with the information needed for you to determine if protection would be suitable. Other providers could add in many more exclusions so always compare them if you decide to shop around.

With British Insurance you can claim on PPI from just day 30 after the event and the policy would be dated back to day one of you being unable to work or from becoming a statistic of redundancy. You will have a 12 month period in which to find work or make a recovery while receiving benefit and then the protection would cease. Other providers could state as many as 90 days before you could make a claim so checking their terms is essential. Also look to see how long you would be able to rely on an income for as some specialists could extend payments to 24 months.

PPI (or payment protection insurance to give it its full title), can be taken out to protect your repayments against the possibility that you might become ill, suffer an accident or become unemployed and be unable to maintain them. You could take out loan payment protection, mortgage payment protection or income payment protection depending on the payments you have to make each month. If you choose leading provider in payment protection British Insurance you would save up to 40% on mortgage cover and 80% on loan payment protection.

You would take out the protection by insuring up to a certain amount of your mortgage or loan repayments, with the limit being set by the provider, or a portion of your income which is pre-agreed when taking on the policy. This would be the amount that would be paid back to you as a tax-free income if you became incapacitated or unemployed.

You would have to wait for a certain length of time before you would be able to make a claim and this would depend on the provider. If you chose to take out PPI with trusted market leaders in payment protection British Insurance, you would have to wait just 30 days after becoming unemployed or from being incapacitated before you would be able to make a claim. British Insurance also backdates to the first day of your unemployment or from you being incapacitated and then they would continue paying you a sum of money for up to 12 months.

If you should choose to compare payment protection insurance with other providers you might have to wait for up to as long as 90 days before being able to make a claim so you would have to compare the terms and conditions of the protection before taking it out. You would also need to check the terms of the cover to see how long you would be able to benefit as some providers could payout for up to 24 months.

The income received from mortgage payment protection would be used towards the repayments of your mortgage and so ensure that you would not be at risk of falling into arrears. Arrears could lead to the lender taking you to court and you could have your home taken through repossession. Loan payment cover would allow you a sum of money towards maintaining the repayments of loans which keeps your credit rating intact and you out of court. The money from income payment protection would allow you to continue meeting any essential outgoings. PPI should be considered by all to protect their outgoings if they should lose their own income.

Losing your income after falling ill, suffering from an accident or becoming unemployed due to being made redundant would cause many problems. You would of course have to make a recovery or look around for work and at the same time be able to maintain all your outgoings. These could be the essential outgoings that need to be paid in order to keep the home up and running or they could be mortgage or loan repayments. In all cases you can consider taking out PPI to ensure that you would have some income coming into the home should one of these disasters befall you.

Payment protection insurance – to give PPI its full name - is taken by insuring with a provider a pre-agreed amount of your loan or mortgage repayments or up to so much of your income each month. This sum of money would be paid back to you as a tax-free income and would help you to keep on top of your repayments which would depend on the type of protection you chose to take out.

You could choose to take out mortgage payment protection insurance if you have mortgage repayments that need financing each month. It is imperative that you are able to keep up with the repayments as if you cannot you are facing the possibility that you could lose your home to the lender. The lender would have no option but to repossess if you could not afford to catch up on mortgage arrears while continuing to meet the mortgage payments you agreed upon. With mortgage cover you would have a sum of money each month that would go towards the repayment and this would stop arrears from occurring.

Loan payment protection is a great way of making sure that you have a monthly income to be able to continue meeting the demands of your loan repayments. You would have to keep these up because missed payments would mean debt and you would have to catch up or face the consequences. Depending on the type of loan you took would all depend on the consequences. If the loan was secured then repossession could happen. At the very least you would have to make an agreement to repay what you owe and your credit rating would be affected.

Essential outgoings could be maintained with income payment protection and this would ensure that you would not have to make severe changes to your lifestyle in order to be able to keep up with the bills. You and your family would not have to make cutbacks.

PPI would begin to provide an income with British Insurance from day 30 of you being unemployed or from being incapacitated. You would receive a payment each month for 12 months before the cover would expire. If shopping around check the terms of the cover to see when it would begin as some providers pay for 24 months.

PPI (or payment protection insurance to give it its full name) can help you to maintain your monthly outgoings if you lose your own income as the result of falling sick, suffering an accident or if you were to become unemployed by redundancy. There are three different policies that could be considered, depending on what your monthly commitments are.

If you have mortgage repayments to keep on top of then you could consider taking out mortgage payment protection insurance (MPPI). If loan repayments are a worry then loan payment protection might be something you could look into protecting yourself with. If you wanted to ensure that you would have the income to be able to continue meeting all of your essential outgoings as well as day to day costs, then consider taking out income payment protection.

You can take all these types of PPI policies with a standalone payment protection provider. You would insure a portion of your loan or mortgage repayments or up to a certain amount of your income. This sum of money would be pre-agreed at the time of taking out the insurance protection and this would be the income that you would be paid back and which would be tax-free. You would then be able to use this money and depending on the protection you had taken out you could continue servicing your loan or mortgage repayments or you essential outgoings.

All form of payment protection insurance would begin to provide you with an income after a period of unemployment which was caused by redundancy or from you being incapacitated as the result of an accident or illness. You would have to read the terms and conditions of the cover to find the start and end date with the particular provider. With some providers such as ethical payment protection specialist British Insurance this would be from the 30th day of your unemployment or incapacity. With other providers it could be as long as the 90th day. British Insurance would backdate the cover to day one of you being unemployed or incapacitated. British Insurance would payout on the protection up to 12 months if necessary while with other providers you might be able to secure cover that would continue paying for anything up to the 24th month.

PPI can give you the peace of mind that should disaster strike and you lose your income, your finances would not suffer too much.