ThePPIClaims

Everything that you should know about PPI!

If you are one amongst those UK citizens who have been Mis-Sold PPI insurance policy then you can file for claim and get your money back. This might surprise but almost 50 percent people living in the United Kingdom have been the victim of this scandal. 

If you are living in United Kingdom then there is very possibility you might have heard about the mis selling of PPI. Believed to be one the biggest scandals, it has left the country in a state of shock. If you are one amongst those UK citizens who have been Mis-Sold PPI insurance policy then you can file for claim and get your money back. This might surprise but almost 50 percent people living in the United Kingdom have been the victim of this scandal.  If you are considering making a claim then read on..

This type of policy was meant to support people who are not able to reimburse borrowed amount due to job loss or medical emergency. It was sold along with loan and mortgage on the pretext of rendering serenity by insuring loan repayments on your inability to do so.

What is wrong with these policies?

Actually, these policies can be of great only if sole correctly. These can be of great help as long as:

•The term to cover is in line with term of loan it is covering

•It is reasonably priced

•You can cancel the policy without paying penalty of any sorts

•It is not loan –funded

•You can reclaim it

•You are not being covered for something you already have, for instance, through other policies, employment benefits etc.

Types of PPI Policies that you can get:

Monthly - When you opt for this policy you can pay for as many months as you want. You can also terminate it at short notice without having to pay for penalty. While this form of policy has been in the market for a significant time, only a few policies are issued on this basis. 

Loan-Funded; Single Premium – Most of the Payment Protection Insurance Policies are sold as single premium. The premium of the policy is calculated as a percentage of the amount taken as loan, generally 30 percent. 

What makes Loan-Funded or Single Premium Policies bad?

Primarily, these policies last for 3 or maximum 5 years. Therefore, if you are taking out a loan for 10 years, you are eligible to make a claim within 3 to 5 years, although you will be paying premium for the duration similar to your loan that is 10 years in this case. 

Secondly, it makes for an expensive option. Wondering why? Because you have to shell out heavy cost for premium making it highly lucrative to those who are selling it. More than 50 percent of the amount that you pay goes to the sales organization from where you have taken loan. 

Besides above slated there are other problems with Payment Protection Insurance too. Most of the policies specify a time during which you can make a claim. Therefore, if you are sick or unemployed for a long time you cannot consider making a claim once this period has elapsed. There are many employment contract that render benefits to employees such as full pay for six months. Therefore, you might be paying for an insurance cover that you are already entitled to.