Compare PPI to Protect a Loan or Mortgage
Illness, accidental injury or redundancy of a main income provider can make life extremely difficult for a family. Unless it has been possible to put aside a reasonably substantial emergency fund, worry over how to pay regular bills (but in particular loans or a mortgage) can add to the stress and potentially slow down recovery from an illness or injury.
For this reason, it is important to have some form of income protection. Many families choose short term income protection insurance policies (because they cover periods of unemployment as well as periods of inability to work through illness or injury), although they usually only provide an income for a maximum of two years. A long term policy will provide such an income, usually around 50 per cent of the family’s normal gross income, for longer, but rarely includes unemployment.
To ensure a mortgage or loan will continue to be paid, or perhaps paid off altogether; the best option is to find a good payment protection insurance, or PPI. These policies will not provide a monthly income; instead, they pay out a lump sum to pay off a loan/ mortgage in the event of unemployment, accidents or illness.
Naturally, the amount of cover available, premiums and the terms and conditions attached to a policy will vary significantly between providers.
This makes it necessary for consumers to shop around a little before taking out this type of cover. Comparison sites make it relatively easy to find relevant providers, obtain and compare quotes suitable to the personal circumstances and requirements of a family.
It’s crucial to compare PPI very carefully, studying all available details, to prevent paying too much or finding that the policy will not pay out when needed because exclusions were missed or specific conditions are not met.