The Payment Protection Insurance policies are useful in situations like sickness, accident or redundancy. There are two types of PPI policies offered: Monthly Premiums and Single Premiums. Monthly Premiums, which are not similar to a loan, are paid on a monthly basis. They can be canceled at any time and interest need not be added to the monthly payment. These products are a little expensive when provided by the lenders though they refund a minimal amount. Single premium are generally calculated for 36 or 60 months and then transferred to the main loan. The Single premium policy cannot be cancelled in between, since once the amount is paid it becomes a part of the loan.

Credit card providing companies are likely to sell PPIs, in addition to banks and insurance providers. One should go through the PPI policy well, before getting into it. Because, there are so many issues related to this payment protection insurance. Some people believe that, certain PPIs miss sell their insurance policies to the wrong customers. Hence you should consider certain things before buying a PPI. Initially, the cost of the insurance policy must be taken into consideration. The Financial Services Authority (FSA) provides certain comparison tables, through which the best policy could be picked up. Answer to yourself whether, you are really in a need to take the policy. If you have enough policies to take care of your unexpected sickness or accident, then this seems to be not needed.

There are some PPI policies which don’t help you at certain situations, say they may not be applicable to self-employed people. They also take into consideration about a particular health condition like back injuries and stress related problems. So such cases must be taken care of and only after analyzing whether the policy is applicable for you or not, and then go for it. The policy’s duration for pay out must also be noted. There are some policies which covers the loan or credit repayments for 12 months. There are also certain other conditions to be considered. The PPI must know about your exact working details and other important details. Your annual income matters a lot to them and hence it must be correctly included.

After taking a payment protection insurance policy, make sure your payment is recorded and figured out. The prices of the PPIs vary and hence it is better to shop around prior to taking a policy. PPI Claims is a process followed for the people who are not satisfied with their payment protection policy and could claim their money back. There are organizations in UK to take care of these claims and help people retrieve their money. Once this is processed their policies are cancelled. The PPI Reclaims is processed when a miss selling is done. That is the insurance is sold to a wrong customer.