Payment protection can stop you from getting behind on your loan repayments
- 15TH NOVEMBER 2007
Payment protection insurance (PPI) is one of a family of protection policies that can step in and give you a tax free income so that you can keep your head above water if you should find yourself out of work after suffering from an accident, sickness or if you were to be made unemployed through involuntary redundancy.
If you were to come out of work and you have loan repayments to make each month then you could be left struggling to find the money to continue meeting them. And if you cannot find the money then you risk getting into debt and even have bailiffs take your possessions. However providing you have checked over the small print of a payment protection insurance policy and have determined that it suits your circumstances then loan payment protection could give a helping hand for between 12 and 24 months (dependent on providers’ terms and conditions) and once you had been out of work for between 31 and 90 days.
If you take payment protection cover from standalone specialist British Insurance then cover kicks in after the 31st day (backdated to day one of the claim) and continues to give you a tax free income for up to 12 months which gives you peace of mind and the security of an income each month so you can concentrate on getting better if you are sick, or back to work.
There are exclusions in all policies that could mean you would be ineligible to make a claim so it is essential you check out the policy. Common ones include if you only work part time, are self-employed, retired or if you suffer a pre-existing condition at the time of taking out the cover. While these are just the standard exclusions there can be others depending on providers so it is essential that you do take the time to read the small print of any policy you are thinking of taking out.
