A payment protection plan has to be given serious consideration
- 16TH NOVEMBER 2007
If you want the security and peace of mind that a payment protection plan can give then it is essential that you give a policy some very serious consideration before you buy the cover. Despite the bad publicity that has surrounded the sector since an investigation was sparked in 2005 and with the Financial Services Authority (FSA) earlier this year handing out fines to several high street names, a payment protection insurance can provide a safety net when bought correctly.
A payment protection plan can provide you with a tax free income once you have been out of work for a defined period of time. This can be anything between the 31st day and the 90th day of you being out of work through suffering from an accident, a sickness or if you should be unfortunate enough to become unemployed by way of involuntary redundancy. Once the cover has started then it would carry on paying out for between 12 and 24 months depending on the provider which gives you plenty of time to get back on your feet and back to work as well as stopping you from getting into debt.
You do have to make sure that the payment protection insurance cover is suitable for your circumstances as this is what led to the majority of mis-selling. Exclusions are found in a payment protection plan with the most usual ones being if you only work part time, suffer an ongoing illness, you are retired or if you are self-employed.
The exclusions are found in the small print but if you stick with an ethical provider such as standalone payment protection provider British Insurance for your payment protection plan then you can be sure of getting this information along with access to the key facts. You can then determine if a payment protection plan would be in your best interests.
