We all make loans at one point or another. Loans, to a certain extent are very helpful as long as you manage your resources well. Paying regularly is necessary. That is why we need a job in order to secure a comfortable life even with loans. What if something happens and we could not work? What if we got sick or had an accident? These things are valid possibilities. Nowadays, we can find insurance plans dedicated to providing protection to the policyholder when something happens and they cannot make a payment of their loans.
The Payment Protection Insurance is a helpful insurance coverage designed to offer financial support to the policyholder in their time of need. When they get sick and cannot work, they cannot earn a living. If they have coverage like Payment protection, the money can be used to pay for the loans. The payment is in a monthly basis. This kind of coverage comes in numerous nicknames. In the UK, it is unemployment insurance or accident illness insurance. In the US it is known commonly as PPI. If you wish to get this kind of insurance, you have to know how it works and the various considerations in order to get the best benefits from it in the long run.
What this insurance does is help the insured to pay for the monthly debts. You can say that this is a short term protection but nonetheless a very useful one. The coverage can last from 12 to 24 months or depending on the company and their policies. If you wish, you can increase the coverage period but you have to know that the premium that you will pay will increase considerably. The policy is normally offered to individuals from 18-65 and they should have a stable job when applying. The job should be at least 16 hours a week. Some self employed individuals can apply but sometimes it is harder to find insurance for these individuals.
Payment protection comes in 2 formats. It could be a standard policy that does not put into consideration the age, work, gender and health condition (smoking habit) of the individual. Normally, when you make a claim under this policy, you would have to wait from 30 to 90 days. The maximum coverage period is 24 months, after which, you are on your own again. The next option is age related. Normally, this is based on the amount that the individual wants as well as their age. This is only applicable in the UK. The coverage is much shorter and spans 12 months. They also tend to be more expensive than a standard policy.
Get more information on: Payment Protection Insurance
For more information visit: Unemployment Protection Insurance
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