Three Considerations to Determine If Payment Protection Insurance is Right For You

Applying for a loan or home mortgage can be a very stressful and challenging ordeal. Even though the outcome can often be a very wonderful thing – making you more independent or giving you equitable assets you can call your own – it seems like the powers that be make the process of actually obtaining one as difficult as humanly possible.

Unfortunately, it is this complex process that often leads to the customer paying more than they should for hidden “services” that are actually obscure, elusive, and downright dishonest. Called payment protection insurance plans, these are meant well on the surface, but are often times not right for your financial needs.

This is not to say payment protection insurance is a bad thing, but before you agree to purchase one, here are some questions you must keep in mind in order to keep yourself from getting taken advantage of:

1. Did you know PPI Plans are add-ons? PPI Plans are sold through banks, providers, and third party brokers. They bring with them higher commissions and are often emphasized to salesmen, who will stop at nothing to make sure one is included in your repayment. After all, if they were upfront about everything, there is a better chance you would not buy the plan. Unfortunately, many customers — over half in a recent survey — were never even told about the plan being optional. They didn’t know the extent of the coverages and limitations. They were given misleading, inaccurate, and ultimately unfair information that influenced their transaction. Who can blame them? Would you want to lose a sale? Well, that depends which side of the equation you’re on, and whether or not you believe in the age-old adage that what goes around truly comes around.

2. Did you know PPI Claims have a higher rate of rejection? Because payment protection insurance plans are not underwritten at the sales stage, it falls on the customer to know when his coverage will apply to possible insurance claims. Obviously, the customer is rarely in a position to make this call, and as a result, many claims are rejected on the grounds of irrelevance. So in return for costly monthly payments that stack up over time, the customer gets nothing to show for his hassle, which breeds the question: why take part to begin with? Awareness of PPI plans can stop these issues before they start. Just make sure that you know everything for which you are paying.

3. Did you know you can reclaim PPI charges? It doesn’t matter what circumstances a PPI plan is passed along to you. Whether as a result of improper training and monitoring of sales staff or simple failure to consider your financial circumstances, financial service providers have an obligation to make sure you understand what they offer. If you feel you have been targeted in a PPI Plan Scheme, then your best option is to seek the help of an experienced organization trained in dealing with ways to reclaim PPI charges.

Payment protection insurance is not underhanded in and of itself. But the nature of PPI Claims must be understood, weighed, and measured against your financial circumstances if you are to get anything out of it. While you can reclaim PPI charges, make sure that you first know what you are getting yourself into, and avoid future headaches.

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