Check Out Payment Protection Insurance

Check Out Payment Protection Insurance
If you​ check your credit card bill carefully,​ you​ will notice that there is​ sometimes an​ optional extra charge there .​
You may have selected it​ and in​ that case it​ will cost you​ a​ set amount,​ or​ it​ may be that you​ have not selected it​ and in​ that case it​ will be zero .​
This payment protection insurance or​ PPI .​
Payment protection insurance has grown rapidly in​ the​ last couple of​ years and is​ now offered by virtually all credit card providers,​ on​ all of​ their products .​
It has had both praise and criticism,​ with one of​ the​ strongest criticisms being that it​ offers the​ customer no protection at​ all,​ and only protects the​ lender .​
Payment protection insurance is​ an​ optional insurance cover that you​ can pay for .​
the​ cost will be added to​ your monthly credit card bill and will typically be assessed on​ the​ basis of​ your outstanding credit card balance .​
So,​ for example,​ the​ cost of​ the​ insurance might be five pence on​ every pound you​ owe on​ your credit card bill,​ so if​ you​ owed one hundred pounds,​ five pounds would be added to​ the​ bill as​ the​ cost of​ the​ payment protection insurance .​
One of​ the​ fiercest criticisms of​ payment protection insurance is​ that it​ will not offer any protection .​
It is​ designed to​ guard you​ against such possibilities as​ losing your job or​ becoming unable to​ work .​
If you​ become unable to​ meet your repayments on​ a​ credit card,​ typically what happens is​ you​ will become subject to​ harsh penalty charges,​ your credit rating will be severely damaged,​ and eventually the​ debt will be referred to​ a​ collection agency .​
What the​ payment protection insurance is​ supposed to​ do is​ step in​ in​ such situations and continue making the​ repayments on​ your behalf .​
However,​ there are very strict conditions attached to​ payment protection insurance .​
It will only meet your repayments if​ you​ have lost your job through no fault of​ your own .​
So for,​ example,​ if​ you​ are made redundant,​ or​ become ill,​ the​ insurance might step in,​ but if​ you​ simply quite your job,​ it​ will not .​
Also,​ there is​ the​ issue that many forms of​ illness will not be covered,​ or​ if​ they last too long,​ the​ repayments will only be kept up on​ your behalf for a​ limited time .​
Therefore,​ you​ should consider carefully before committing to​ payment protection insurance .​
You can cancel it​ at​ any time,​ but it​ is​ one more expense that you​ should think about before incurring.
Many credit card companies make you​ choose their own payment protection insurance,​ however,​ did you​ know you​ did not have to?
Just recently the​ Office of​ Fair Trade announced that credit card companies were to​ allow consumers to​ choose their own payment protection insurance from a​ third party .​
This move is​ a​ welcome relief to​ consumers as​ now they can take their pick from a​ variety of​ payment protection insurers at​ a​ lower cost .​
It many cases consumers have found their payments have been halved and that they have more insurance cover than before.
Check Out Payment Protection Insurance Check Out Payment Protection Insurance Reviewed by Henda Yesti on February 10, 2018 Rating: 5

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