Understanding Payment Protection Insurance

Money

When loan payments become difficult or impossible, payment protection insurance (PPI) can be used to help someone cope with the inability to pay. Spiraling into debt is unfortunately very easy to do, and once it mounts high enough, it could be impossible to get out of. Filing bankruptcy or defaulting on a loan is probably up there with the worst things that can happen in life, and without PPI, the loan companies will be able to ruin the life of someone who is not making payments. However, certain conditions must be met in order to qualify for PPI. A potential applicant has to prove that they are unable to work, which renders them unable to make payments.

A person must have lost their job in a legitimate manner in order for them to qualify for PPI. The agent who works with the applicant will do research and check into the validity of the claims that the applicant makes. For that reason, it is imperative to be honest and up front with the agent, or help won’t be offered. In the case of a severe accident or health setback that causes job loss, PPI will usually be granted. That’s because the control of the situation is out of the hands of the individual. Working and earning money is the only way to pay off loans, and if people are hospitalized or disabled, they can’t work.

Another way that jobless people can qualify for PPI is if their company had to lay them off for economic reasons. Many companies today are cutting back on how many employees they have staffed; therefore, there are many victims of these jobless claims. If this ever happens to a person, then they will likely be able to take advantage of PPI with no problems at all.

Potential applicants must be aware that trying to scam the insurance company won’t work, and it could be met with serious consequences. Dishonesty won’t get someone very far in life, and it surely won’t help when dealing with the PPI agent. Don’t try to quit working just to get PPI benefits. The PPI agent will contact the employer to find out the real reason why someone is no longer working. A policyholder could face serious penalties if they are caught trying to scam the insurance agents. Depending on what country this takes place in, the guilty person could be put in jail, ordered to pay fines, or of course start making payments on the loan and pay back everything that they owe with interest.

PPI insurance is a helpful tool that can be the saving grace for many people. For those who are honest workers but have fallen on hard times, PPI can assure them that they won’t be ruined financially due to loan payments that they can’t make.

Andrew Greene is a freelance insurance writer who blogs for ppiclaims.org.uk, a site he recommends to anyone who wants to learn more about ppi claims.