How is PPI impacting your lives?

If you have many loans and want to make sure that all of them are repaid in time, than you should consider Payment Protection

07:30 18 September 2013

The Payment Protection Insurance (PPI) is a great way to make sure that your loans are repaid in time, no matter what happens to you during the repayment period. It works especially well in case you have long-term and large loans to repay, so you should definitely find out more about it if this is the case. Let's take a look at the advantages and disadvantages of PPI loan protection.

Advantages:

• The PPI will cover the monthly repayment of your loans during the period of time when you cannot afford to repay them anymore;

 

• Starting a PPI immediately as you contract a new loan is the best method to secure the repayment and stop worrying about it;

 

• It eliminates any risks of you being laid off or becoming sick and unable to work, so in this regard, the PPI is to your loans what a health insurance is to your heath;

Disadvantages:

• PPI only secures certain debts, so if you have more than one loans that needs to be paid, the extra money remaining after paying one may not actually go to paying the other;

 

• PPI may require you to wait for three months before you can use it to help repay your loans;

 

• You have to pay the PPI on a monthly basis for the whole duration of your loans;

 

• The PPI will only help repaying your loans for a couple of years or a little bit more;

 

• PPI usually does not cover the loans of freelancers or self-employed people; most of these policies only cover persons who had a solid working experience in the past;

So make sure that you qualify for a PPI loan securement before applying for it, and, most importantly, make sure that you can afford it for the whole duration of the loans you want to secure.