How Do You Know If You Qualify For A PPI Settlement?

If these scenarios apply to you, you may not be eligible for a PPI settlement.

09:49 14 April 2013

If you are considering a PPI plan — Payment Protection Insurance — there are a few things you’ll want to know before you sign up. Most of the time, PPI is beneficial for individuals and offers additional financial security in the event of unforeseen circumstances.

 

There are times, however, when certain individuals may not qualify to receive the benefits from a PPI and therefore, would not need that type of cover. Here are a few scenarios which may prevent you from obtaining a PPI settlement:

 

• Unemployed—if you were unemployed when you acquired your PPI cover; you would most likely not qualify for any PPI settlement. If you are looking for cover and are unemployed, be sure to clarify this before you agree to anything.

 

• Self-Employment—the case with many self-employed people is that they make an adequate living, but the monthly income may fluctuate drastically. For many people, this is not the case and there is a fairly consistent and predictable income. Unfortunately, self-employment status as a sole form of income may disqualify you from being able to receive a PPI settlement.

 

• Contract workers—since income with this type of work can fluctuate, similar to self-employment; contract workers also may not be able to receive any PPI settlement benefits.

 

If any of these categories apply to you, check with your PPI company and make sure that you either receive information showing that you qualify for benefits in writing, or print with headers off a website.

 

If you don’t qualify because of your working status, you would be better off placing your money in savings so that you’ll have a bit of a financial cushion for any difficult times. If none of these categories apply to you, then you will most likely be able to receive PPI settlement benefits, but it is always a good idea to check with your company for any exceptions.