Being creditworthy is something everyone should strive for. This provides great help when you require a loan or need a mortgage to secure a home. However, you need to be able to pay your loans and pay the required amount in time.
Failure to observe the required agreement will warrant greater consequences for your actions. The payment protection insurance, on the other hand, provides a way out for you. Circumstances may occur that may render you unable to pay your loan at the required date, by which the insurance company give you the amount to pay, and you, therefore, remain safe.
What is covered?
Entering into every contract requires agreements between two persons. Based on your agreement, you will secure the policy that best suits your needs and that which will adequately cover your needs. Items covered include sicknesses or disabilities, unexpected redundancy, accidents or even death. All this depends on your policy. Most policies don’t cover existing conditions, the first three months and some illnesses are also not covered. Be careful to adequately read the policy document before entering into any agreement negligently.
So, why do you need payment protection insurance? I’ve come up with 4 good reasons:
1. To protect yourself against unforeseen contingencies
Accidents are impossible to predict. You could be well now yet you don’t know what will happen next. To protect yourself against unforeseen contingencies that may leave you and your family struggling, taking an insurance cover for your payments is somehow advisable. This reduces your worries and gives you peace of mind as you undertake your business.
2. Your loan is payable over long periods of time
Sometimes one may forget of their obligations, more so where they have been experiencing stress over some time, or have been so occupied, and one ends up forgetting the payment. Taking an insurance cover will always cover your loan expense upon claiming, the good thing being, on claiming, the money can only be used to repay the loan.
3. You need not worry about your items being confiscated
In case you have quite a large mortgage to repay, taking cover will be an appropriate decision. Instances may occur, such as unexpected redundancy that may make you unable to repay the mortgage for quite some time. But if you had the cover you need not worry about your items being confiscated to repay your loan as it’s well taken care of.
4. You are paying the loan alone
In some cases, spouses or partners may agree to jointly take a loan, and both contribute to its repayment. In case one lacks the money one time, the other can easily cover the expense. In instances where you alone are paying the loan, it’s advisable to take a cover for your loan payments.
Choosing a PPI policy
Before taking the mortgage, you must evaluate the means of income that can be used to repay the loan. This includes savings or other monthly incomes you receive. If it happens you are not able to adequately pay the loan amount, consider taking a loan protection insurance for future insurance.
When you make the decision to protect you and your family from any unexpected outcome of default payment by taking a cover, it is always advisable to consider a few thing such as:
- The features of the PPI policy
- The length of payout
- The amount of payout
The time allowance a PPI claim can take to complete mostly depend on the complexity of the policies involved. Fill up the form and send it back to them as soon possible so that they’ll be able to process the claim immediately. This could take around 8 to 16 weeks.