The Payment Protection Insurance, also known as PPI for short and as credit protection insurance, credit insurance, and loan repayment insurance, is a type of insurance product that allows consumers to insure the repayment of their loans or debts in the event that they die or if they become disabled, ill, or unemployed. There are also some other situations wherein the borrower can make use of this insurance other than those mentioned previously, including circumstances that will prevent them from generating income to repay their debts.
Payment Protection Insurance – What is This Used For?
PPI can be bought by a borrower to insure all different types of consumer loans such as car loans, mortgage loans, and loans that are taken out from finance companies. Credit card accounts may also include this particular type of insurance as a standard. There are also some types of specific categories wherein this insurance policy can cover, including credit life insurance, credit accident insurance, and credit disability insurance. While it is true that the policy is paid for by the consumer or the borrower, the benefits of the insurance product actually go towards the lender.
Payment Protection Insurance and Its High Number of Rejected Claims
In all kinds of insurance products, there are some claims accepted, while others are rejected. This is actually standard when it comes to finance companies and loan lending institutions. However, in the case of the Payment Protection Insurance, there is a very high number of claims that have been rejected. One of the main reasons behind this is because the insurance product is not underwritten during the sales stage; many consumers take it out without carefully considering as to whether or not it is actually a wise investment for their particular situation.
Filing a Payment Protection Insurance Claim through the Help of the Right PPI Claims Company
Many experts and consumers consider the PPI claim as one of the largest financially-related crises in history. There have been more than 34 million Payment Protection Insurance policies sold since the year 2001. While some of these individuals have taken out the insurance product without carefully considering it, a lot have actually been led to believe that they really need it. If you are one of these people and you believe that you have been tricked by the lender in purchasing this product, it is time that you file for a claim through the help of the right PPI claims company.
Payment Protection Insurance Plan 