PPI – Payment Protection Insurance
In the past, signing up for an insurance plan involved spending a few hours chatting with an agent in a regional office. Thanks to technology, you can now sign up for an income protection insurance plan from the comfort of your own home. All you need is basic information about your medical and employment history. In a few minutes, you can secure world-class protection against all possible economic futures.
Why Purchase Payment Protection Insurance?
The name says it all. Payment protection insurance allows you to keep meeting your financial obligations whether or not you are employed. With this insurance, if you are made redundant or fall ill and find yourself unable to work, the benefits provide up to 65 percent of your gross monthly income.
Each plan has its own limitations in terms of income caps. Additionally, the number of weeks in which benefits are provided is determined at the time the policy is created. Some policy holders choose a window of one to three years. Other policy holders choose a particular age. Whatever particular plan you choose to implement, you can relax knowing that you will have protection if a major disaster befalls you.
The most important aspect of payment protection insurance is allocating funds to a budget. How much money do you spend each month and what do you spend it on? What percentage of your income goes toward making a mortgage payment? How much money do you spend on food and utilities? By answering each of these questions, you will be better prepared to choose a plan that is designed to cover these expenses in the event of an emergency.
Certain payment protection plans are designed to cover mortgage expenses, while others are designed to handle health insurance issues. If you have a large family with children, you may want to choose a plan that helps you pay for food and educational expenses.
The Sign Up Process
Once you have reviewed your options, signing up is easy. Most of the information you need is available through the website or can be easily accessed by talking to an agent.
All you need to do is choose a deferral period. A deferral period is the time between the date of your last day of employment and the day your first benefit arrives. In general, the longer this deferral period is, the lower your monthly premium payments will be.