Posted on January 22, 2012 - by admin

The Truth about PPI

PPI or payment protection insurance is also called credit protection insurance or loan repayment insurance. The term PPI is most widely used and that is how we’ll refer to it here. No matter what name it goes by, PPI is an insurance product designed to cover loans in the event that the policy holder is unable to do so due to illness, accident, death or job loss. Loans that can be covered by PPI include mortgages, auto and other loans, and credit cards.

If circumstances in your life cause you to be unable to meet your monthly obligation, your PPI policy can cover it for you. Simply file PPI claims against the policy and payment should be made on your behalf.

It is important to understand that PPI has both benefits and drawbacks and both must be clear before making a purchase decision. In addition to the obvious benefits of peace of mind and financial security, there is the potential for enormous downside. Due to some unscrupulous lending practices by some lending institutions, many people have – and are paying for – PPI without their knowledge. It is crucial that you educate yourself about the risks and benefits of PPI as well as how to find out if you already have it.