Low cost solution: Payment Protection Insurance

Find out how Payment Protection Insurance can benefit you during unfortunate circumstances.

10:13 24 April 2013

Many people believe they will never need to take advantage of something like Payment Protection Insurance, so they typically opt out of those programmes offered by various companies. In many cases, this might be correct. It only takes one flooded job market, or struggling business laying-off employees to throw everything off-kilter.

 

Preparation is one of the best ways to ride out economic hurdles and unexpected issues like unemployment. Those who are already unemployed won’t be covered if they try to obtain Payment Protection Insurance. It’s too late then, which is why in this case preparation and planning is critical.

 

Self-employed people, and contract workers may not be able to collect benefits from Payment Protection Insurance, but they should check with the individual companies to see what the policy is.

 

These are a few of the benefits when you opt into a Payment Protection Insurance (PPI) plan:

 

• Mortgage loans—if you suffer a financial setback, you may qualify for your mortgage payments to be made for you. This prevents you from losing your home in the event that unemployment or a different issue makes it impossible for you to pay.

• Credit card loans—no one likes to receive phone calls about missed credit card payments. It’s annoying and causes stress and anxiety when you aren’t able to make the payments. This type of protection can save you a headache, and keep your credit rating in good standing.

• Vehicle loans—transportation is essential to maintain a certain way of life. It often is necessary in order to be effective at job seeking. If you’ve become unemployed that last thing you need is your vehicle repossessed.

• Reduced stress—while this benefit is intangible, it may be the most valuable aspect of Payment Protection Insurance. Anxiety and stress weakens the immune system and makes us more vulnerable to illness. Reducing worry about payments on key loans will go a long way in maintaining good health.