Must knows about Payment Protection Insurance
Planning ahead with Payment Protection Insurance may save your home someday.
11:08 22 April 2013
Everyone knows that economies are constantly fluctuating. Ireland’s recent extension of their debt repayment is an example, as is the extension of the repayment for Portugal’s debt. Depressions and recessions take their toll on many people as well as businesses.
You never know when something may cause people to lose their jobs, or suffer some other unfortunate incident, so protecting yourself as much as possible during such times is advisable. One of the avenues available to customers is Payment Protection Insurance.
When economies suffer, people may be concerned over their ability to keep up with mortgage loan payments, credit card payments, and vehicle loan payments. If you’re already experiencing some financial difficulties, the last thing you want to be concerned with is the possibility of losing your home.
Payment Protection Insurance is what gives you the benefit of knowing your loan payment obligations will still be met.
A few things Payment Protection Insurance may be offered for, as mentioned above:
- Mortgage loan repayment
- Vehicle loan repayment
- Credit card bill payments
Opting for this coverage may need to be through separate companies, and frees up your existing cash flow to take care of your other monthly needs. A few things that Payment Protection Insurance won’t cover:
- Groceries
- Utility payments
Check with each of your companies that require monthly payments to see if Payment Protection Insurance is available. The good news is that it typically doesn’t cost very much, but will provide reassurance that you can weather some severe financial situations if necessary.
Make sure that you are aware of situations that might exclude you from receiving the cover though. Sometimes your employment status at the time you apply for Payment Protection Insurance might make you ineligible to receive benefits.
Here’s an example, you may not be able to receive benefits if these situations pertained to you when you applied, or if you plan to apply:
- Self-employment is sole income
- Primarily contract work
- Unemployed