How to reclaim mis-sold PPI
PPI pays your monthly debt payments if a specific qualifying event occurs, such as becoming ill, getting laid off, or being involved in an accident. Before purchasing PPI you should determine whether it is a wise investment, and if so, choose a policy that is best meets your needs.Understand how PPI works. PPI is an insurance policy that is activated when a qualifying event occurs, such as being laid off or illness. Once you submit a claim and the claim is accepted, the insurance company makes monthly payments towards whatever debt is covered under the policy.
PPI policies typically make the minimum payment on your loan, especially for credit cards. PPI should be considered a “safety net” rather than a long-term debt reduction strategy.
Determine whether PPI is right for you. For some consumers, PPI offers peace of mind by enhancing financial security to carry you through significant illness or loss of income. PPI may be a good investment for you if:
You have some other way to “survive” for a period of time without a form of income (e.g. savings, a second job, sick pay, or an existing insurance policy).
You are self-employed, an independent contractor, or temporary employee. Many PPIs will not cover this type of employment.
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