Payment protection insurance is a kind of insurance you need to take to ensure that the money you are lending comes back to you. PPI is also referred as credit insurance, loan payment insurance or credit protection insurance. And you can guess well from the name what exactly it is. It basically provides you insurance that enable you to insure the repayment of the loan in certain cases like if the borrower dies or loses a job or becomes ill or disabled or faces some situations which hinder him from repaying back the loan amount.
PPI’s are widely sold by the banks and other credit card providers. They do it as an add-on to an overdraft product or to the loan. It offers peace of mind says ppiclaimsfacility.co.uk. Credit insurance should not be confused with income insurance which protects any kind of income and is not just limited to a specific debt. PPI’s can be purchased for all kinds of loans i.e. home loans, car loans, loans from finance companies, etc.
Some policies are available to cover some categories of risk like credit accident insurance, credit life insurance, credit disability insurance, etc. The benefit in some cases goes to the company also which provided the credit to the customer even though the customer has paid for the policy he purchased. PPI usually covers loans for a limited period (like 12 months) and the nature of the loan is overdraft loans. After this the borrower needs to find other ways to pay you back the loan amount. PPI’s are different from other insurance types like home insurance, getting which can be arduous.
You need to buy such insurance by reading the risk and policy documents and knowing in what conditions you will get insurance. If you looking for such information that, when can you make a claim, you can get information on http://ppiclaimsfacility.co.uk.
Click here for more information ppi reclaim