A payment protection plan should be bought wisely
- 26TH DECEMBER 2007
Despite recommendations set out by the Financial Services Authority in 2005, mis-selling within the payment protection insurance (PPI) sector is still occurring. And while some changes for the better have been made many more still need to occur if the many problems are to ease. When buying a payment protection plan you have to consider what you are purchasing very carefully and make ensure that you realise there are exclusions in all policies.
Providing you buy the cover with the exclusions in mind it can give you an income with which to meet your monthly loan, credit card or mortgage repayments each month. The premiums for the cover can vary enormously so it is vital that you shop around for the cheapest. An independent provider will always offer the cheapest quotes along with giving all the information needed.
British Insurance can save you hundreds of pounds on a payment protection plan for your loan and mortgage protection. This cover would pay out once you had been off work due to sickness, unemployment or an accident. Payment starts from the 31st day of being continually out of work and would provide a tax free income for up to 12 months. Other policies can differ and providers can ask that you are off work for at least 90 days before payment, so it is vital you choose the policy that best suits your needs.
It is hoped that from March 2008 buying a payment protection plan will be easier with the introduction of comparison tables. This will show how much the cover will cost, tell consumers about the exclusions and make choosing the cover much easier through a series of questions. It is hoped through the tables the cover will be made more transparent and hopefully help to put an end to the mis-selling of all payment protection products.
