Income Protection Insurance Basics

Income protection insurance basics will help you determine if this type of protection is correct for you. If you, like so many workers, are unfamiliar with the details of this cover, you will find a thorough independent investigation of it to your advantage. Quite a few people begin considering insurance for income once they have become established in a line of work they expect to last, after they have launched their careers and have begun making plans for the future. Often, plans for the years ahead include such things as the purchase of a new home or car, starting a family, planning for retirement, etc. Learning about income protection coverage and securing this type of insurance is one step that can be taken to help you work toward your goals.

As successful planners are aware, it takes more than desire and an adequate income to make certain goals transition into reality. It also takes contemplation of the various detrimental situations that could arise, derailing you from your purposes. For instance, when one of your chief goals is to finishing paying off the mortgage on your treasured home, this goal can be waylaid by the sudden and unexpected loss of employment. In scenarios where loss of employment can be traced to a lasting illness or injury, however, you have a way to protect yourself financially. Learning about income protection insurance basics can help you discover how to lend yourself such protection.

Income Protection Insurance

What the Insurance Covers

The basics of this insurance include provisions for what happens if you become unable to work for a set of defined reasons. There are certain conditions leading to one’s unemployment that will not qualify, such as a worker’s self-injury, voluntarily resigning from a company, a worker being laid off due to volume of a available work or other considerations. However, when you are precluded from attending to your regular job duties thanks to a policy-stated disability, illness, or injury, you qualify for the protection rendered by this policy. The protection is based upon the income you earn with your company.

While you will want to thoroughly discuss the basics and in-depth details with an experienced specialist in income protection insurance basics, you will find some guidelines apply nearly universally. For instance, you will discover that, from one agency to the next, benefits from this type of protection start after what is known as a “deferred period.” This means the period of time that follows a qualifying injury, sickness, or other included event and precedes the point at which you begin receiving your payout. This span is an important consideration that you will need to mindfully determine, calculating how much you have in savings accounts and other resources to get you by until benefits begin. Continue reading

Four Things To Think About Before You Take Out A Payday Loan

As we all know, money has a habit of running out and usually at the same time that expensive and unexpected costs crop up. Unfortunately there is no such thing as an endless money pit which means that at times we are made to seek ways of easing cash flow problems. Some people apply for text loans as it is a very viable way of solving temporary financial issues but with any kind of personal finance product, there are some important considerations first:

1)      Is there another option?

This may seem like an obvious question but often there are other alternatives to taking out a loan. Friends and family, if they are in a position to do so, are often only too glad to help someone who has fallen on hard times. Also, simply cutting back on a few unnecessary expenses can free up a fair amount of cash over the course of a month (or even a week). Ask yourself, “Do I really need that daily coffee at £3 a go?” The answer is probably not.

2)      How much money do I need to borrow?

The temptation when taking out a loan, whether it’s a conventional loan or a short term loan like pay day loan lenders are offering, is to borrow more than you actually need. Sadly, this is a sure-fire way to lead yourself further into debt but it is easily avoidable; do your sums, work out exactly how much you need and don’t borrow above this.

3)      Do I qualify?

Every loan provider will have their own application criteria so where you may be eligible with one company, you may not be with another.

To qualify for most loans, you must usually meet following criteria:

  • A UK resident
  • Over 18
  • Employed
  • Earning £500 or more per month
  • The owner of a bank account with a debit card

4)      Can I repay?

Before taking out a payday loan, you need to consider whether you will realistically be able to make the full repayment on your next payday. The full repayment is the amount borrowed plus a loan charge and be aware that all loan providers will have different fees.

Are You Qualified for PPI Refunds

For the last ten years, PPI or Payment Protection Insurance has been one of the most sensational financial scandals. The estimated cost for the mis-sold PPI policies is worth over a billion pounds. How would you know if you were mis-sold the policy?

If you were told by the salesperson that taking PPI is compulsory when taking any loan or credit card to get approved, then you were mis-sold the PPI policy. Taking PPI is only an option and there is no way that this insurance could be a requirement to anyone who takes a loan. Were you pressured into purchasing the insurance? If so, you may be eligible to receive refunds from the financial institution that provided it. Seek an advice from an expert that has the capability to provide you a PPI calculator.

There are a large number of people that are not eligible to take PPI but nonetheless were targeted with sales anyway. So if you’re one of these people who were a victim of PPI mis-selling, then you are likely to qualify for a PPI refund. Those people who are not eligible to take PPI are students, self-employed, part-time workers and pensioners. Check with the experts though you are likely to be eligible for the refunds if you fall to any of these categories.

mis-sold PPI

There are some other ways on how the PPI policies were mis-sold. Many of the loans were sent as a part of a mortgage. If you bought a new mortgage within the last ten years or so, then you were mis-sold PPI as a part of the mortgage.  This practice has been considered illegal. You may be paying for the PPI policy without even knowing that you have it so you better take a look at your mortgage policy.

If you can directly relate with the above situations, then you are likely eligible for a refund claim.

An estimated £3 billion funds for PPI have been kept by banks.  This just means that they are capable to repay what they have owed to the consumers. PPI repayments were debated in the courts that is why there are delays in paying out the consumers.

In the recent years, PPI has been one of the most contentious issued in the financial trade. Many banks have been found guilty of mis-selling PPI policies at costs estimated at around 1 billion pounds. You can identify how much you were owed by using a PPI calculator.

Spend Your PPI Refunds for Your DIY Home Needs

You can use your PPI refund for your DIY projects at home. These funds might be the answer to your home repair needs and also for your home improvement projects. You can buy new utensils from that money so you don’t have to be embarrassed when serving food to your visitors using those old and worn out utensils.  You can also overhaul the kitchen equipment by using a portion of this money.

If you want to re-decorate your property, you can buy plants and flowers to freshen up the view. Plants like the money plant rose flowers and daisies make a home look so beautiful. Buy these and plant them together with your family.

You can also buy cost-effective products for your home such as new carpet and curtains. Make sure that the stuffs that you are getting to improve the ambiance of your home are of good quality so that it would last longer and you don’t have to buy every now and then. You can also renovate the whole house if you want. Repair all the things that need to be repaired, have the whole house repainted and replace damage items if there’s any. This might be the perfect time for you to give your house a new look. After that, you may want to bring your family out for dinner and have time to bond with each other.

Buy a carpet shampooer instead of taking your carpet to the carpet cleaning shop and pay for the services. That way you can save a lot. The shampooer has a shampoo and tank of water that you will use for the cleaning. It would be suitable for you also if you will just buy glass cleaners if you have glass covered stools and tables. You can just buy the needed materials and just do the cleaning yourself.

Spend your PPI wisely as possible. You have the right to do whatever you want with it. Just enjoy your hard-earned money.

What is PPI?

Payment protection insurance, abbreviated as PPI, is a type of insurance designed to cover outstanding credits and debts. Normally, the insurance is taken out when an individual wants to secure a loan or overdraft such as a car loan, mortgage, or credit card. Once the customer is unable to pay for the loan or credit due to circumstances such as unemployment or layoff, sickness, accident or even death, he or she can file for a PPI claim. Depending on the terms of the policy, the insurance company will pay for the loan or a percentage of what should be paid for in a particular span of time. PPI is also known as credit protection insurance, account cover, loan repayment insurance, or accident, sickness and unemployment insurance (ASU insurance).

Payment protection insurance can be taken from a variety of sources. Most lending agencies offer the insurance policy together with the loan. For instance, if the customer takes out a home mortgage from a bank, the bank would usually offer for the customer to also take out the mortgage payment protection insurance as an add-on. However, the customer can choose to refuse this offer and just get a standalone insurance policy from a different insurance company. As one would when buying anything, the borrower should look at all the options available in order for him or her to get the best policies offered by different companies and agencies.

Almost all protection insurance is provided for a specified or limited span of time, normally one to two years. After that period, the borrower should already be able to resume responsibility for paying for his or her repayments. Basically, the borrower should be able to find another source of income or be able to go back to work again after the specified period in the insurance policy.

Mortgage PPI covers the monthly mortgage payments in the event that customer loses the ability to work and have a monthly income. This will prevent them from losing their homes while they are recovering from a health failure or accident, or while they are looking for another job. Likewise, credit card PPI covers outstanding payment dues for the specified time.

When it comes to loan protection, it covers different loans such as personal loans and car loans. Meanwhile, there is also what is known as income PPI in which the customer will receive monthly compensation while he or she is not working.

Useful tips for buying payment protection insurance

Many lenders recognise payment protection insurance as a comforting concept. It requires them to pay for a monthly premium that usually lasts for a year. Every time they are unable to work due to involuntary employment, accidents, or illnesses, they will get an income that they can use to pay off their debts. Some policies may also provide full repayment in case of unexpected death.

Do you need protection?

This policy may sound enticing, but you have to decide whether you actually need it or not before buying it. Here are some of the important questions you need to ask yourself before finalizing your purchase.

First, ask yourself if you are already covered by other insurance policies. If you already have a life insurance policy, you have to check its terms and conditions before jumping to a payment protection plan. Once you have noticed that it will not give you the amount of protection you need, you can already purchase payment protection to supplement your life insurance.

Next, you have to check your savings account before jumping into this offer. If ever you encounter an accident or illness, is your savings enough to pay for your monthly debt repayments? If you answered this question with a definite yes, you have to think twice before purchasing an expensive PPI policy.

Finally, try to look at your circumstances in a realistic manner. Do you think your friends or relatives can help you in times of financial hardship? Does your employer offer benefits for employees who are unable to work due to illnesses or injuries? Always check your resources before resorting to a loan protection plan.

Are you a victim of PPI mis-selling?

Unethical selling practices are usually associated with payment protection insurance. Since some people may buy this policy even if they will not get the chance to make a valid claim in the future, you have to check its limitations and exclusions first. If it seems like you are qualified to get compensation from this protection policy, do not hesitate to purchase it for your own good.

If you already purchased this policy, you have to reflect on how your lenders sold it to you. Were they able to discuss the specific exclusions that may affect your chances of receiving compensation in the future? If your lenders offered you this policy without explaining its limitations and exclusions, you have the right to fight for your PPI claims.

Can you get it from your lender?

Of course, you can always ask your lender if they are offering payment protection insurance. However, this does not mean that you are required to purchase this policy from your lenders alone. You have the right to shop around for insurance policies that manage to offer maximum protection at reasonable prices.

Some lenders may also advertise the costs of loans without disclosing its insurance cost. They usually keep their loans cheap and load the added costs on the insurance policy. Before taking out any financial agreement, you have to dig deeper and find out whether it includes additional insurance costs or not.

However, if you are really aiming for this insurance policy, you can always keep its costs low by looking for standalone PPI policies. You can use them to protect any kind of loan that you have already taken out at a price that is cheaper than what your lenders are offering. Just make sure that you are not double covered by removing the check in the payment protection box of your loan form.

Always remember these tips while you are shopping for the best payment protection insurance. As long as you are keeping your eyes open to the potential risks of purchasing PPI policies, you will never become a victim of lenders who are trying to take advantage of their clients.

Claim back payment protection insurance

Payment protection insurance – have you heard of it? If you haven’t then you may have heard it called by other names such as loan protection, debt protection, and many others. It doesn’t matter what the lender calls it, it amounts to the same thing. There has been an amazing amount of negative hype surrounding this type of insurance, and if you have been paying attention to the financial news then you will know exactly why. Payment protection insurance is wrongly sold to millions of people. When this happens, the victim has every right to claim back the premiums that they have paid into the policy, sometimes with interest on top. Figuring out whether you are a victim is the problem. First of all, let’s examine what this type of insurance does.

Basically, this insurance policy was brought about to protect people who have taken out a loan or those who use credit cards. As you know, if you have either of these things then you are obligated to pay back a certain amount each month. If you do not make these payments then interest is added on top, meaning that you sink further into debt. Obviously, the only way that you are going to be able to make these payments is if you are in full time employment. If you were to fall ill or have an accident that meant that you were no longer able to work then you would definitely struggle to make these payments.

Payment protection insurance
If you had payment protection insurance then you would be covered if either of these things happened to you. You would be able to make a claim on your policy and it would then pay out a set amount of money towards your repayments so that you do not end up further into debt. Whilst this may sound like a good thing, you have to remember the fact that millions of these policies are wrongly sold to people all over the United Kingdom. For those who fall victim to this, it can be a very stressful time. So, you need to find out if you have been wrongly sold PPI, because if you have then it is your turn to claim compensation.

Unfortunately, the mis-selling of payment protection insurance is one of the biggest financial issues facing this country in the 21st century. The difficult thing is trying to find out if you have been a victim. Let’s take a look at some of the classic examples of how this happens. First of all, were you retired, unemployed or self-employed when you took out payment protection insurance? If you were and you were not informed that this would exclude you from being able to claim then you have been wrongly sold PPI. This is when you should start the claims process. Continue reading

PPI Complaints on the increase

Payment Protection Insurance or PPI is an insurance product that covers your debt repayments in case you are unable to work due to an accident, illness, or if you involuntarily lose your job. PPI has come under intense criticism after studies found out that most people who have been sold PPI can never make a PPI claim, while others were compelled to buy the insurance products by the banks. This is done by telling consumers that PPI is a compulsory product that must be purchased before they can take out a loan. Other incidents involve banks or brokers not clearly explaining the merits and consequences of a PPI policy to the consumer. That is why millions of people have complained to different entities just to make PPI refunds.

PPI Complaints Surge

In January 2011, there was a reported 40% surge in the PPI complaints and the Financial Ombudsman Service or FOS. The FOS handles individual financial disputes between banks and consumers. For the years 2010-2011, there is a forecasted 70,000 PPI complaints, which is well above the estimated 46,000 cases of which it is budgeted. As a result, the FOS will fall short of its target of resolving 210,000, cut down to 180,000 because of lack of budget.

This surge in complaints is expected to slow down the operations of the FOS, even as it resolves many complaints in a day. In its defense, the FOS points to the unprecedented number of complaints that come in everyday, causing some backlogs. Meanwhile, Individual complaints are also taking quite some time to process. The FOS accuses businesses of being uncooperative with procedures, which is causing delays in resolving complaints.

Claims Companies

Due to the slow proceedings at the FOS, people are constantly looking for other options that could take care of their PPI concerns more efficiently. For many people, that alternative option is the claims companies. Claims companies are becoming more and more popular in the UK due to the abundance in PPI complaints. People flock to claims companies because they handle cases promptly and go after banks, even pursuing cases to great lengths. Claims companies are very attractive because they have no upfront fees, meaning that people do not have to pay them anything for their services until a case is won for them. Claims companies who offer help to PPI policyholders are similar to the law firms that offer no win no fee litigations. You only have to pay claims companies AFTER your case is won in the small courts. How much is paid? Around 25% of your PPI refund is shared with the claims company as a service charge, which not a bad thing, because you will still gain awards from your PPI refund.

Banks Back Off

Many of these banks have stood down and stopped the selling of PPI. Lloyds Bank along with its subsidiaries, are no longer selling PPI. Neither are they the first major UK bank to do so; previously, Alliance & Leicester Bank of London and many other banking goliaths have stopped selling single premium PPI in the UK. Because of the trauma of the PPI controversy, it is expected that all UK banks will back out in selling the insurance products to consumers.

There are still insurance companies that sell PPI if you are really looking for it. However, you must make sure that your credit rating is at the very least good, otherwise, it will be difficult for you to buy a PPI. If you want to obtain ppi refunds with professional help, there are companies out there that can handle this for you for a set fee.

PPI – who to blame?

When it comes to loans, lenders and loaners alike will do anything possible just to protect themselves from any possible complications. For the lenders, they want to keep the money flowing even to a point that it can be harsh. For the loaners, they want to pay for the installments at the right time in order to avoid any repossession consequences. Or worse, experience criminal accusations. There are a lot of policies that heed this need of both sides. In the UK, the most common one is the PPI or the payment protection insurance. This policy ignited a lot of financial issues and controversies even though it posed some very valuable cushion for the continuity of the cycle. It can be misleading to think that something that looks pretty helpful could ignite such conflict. So without further ado, let’s look deeper into payment protection insurance.

PPI or payment protection insurance is a policy that obviously, protects the borrowing population and to an extent, the moneylenders too. PPI gives proper due to people who are incapable of paying for their installments on the said time of their contracts. The policy came in time to rescue people who have been terminated abruptly due to the recent financial crisis. With more and more companies becoming bankrupt, there will be a lot of lay-offs on installment payments. PPI can cover for the individuals who are not earning anything as compensation for the installments. It’s a great way to stay afloat without ever having to fear for their properties. Also, payment protection answers the call when the most uncertain and unexpected of incidents happen to a client. Incidents such as contraction of deadly disease, involvement in an accident, redundancy or even death can trigger the PPI to pay for the installments. For a period of 12 months or 1 year, the payment protection insurance will be paying for all the installments. And if during that time the payment is not yet complete, then an individual is obliged to once again apply for a policy.

At first look, you’ll never realise that PPI could ignite such conspiracies. That’s because the real problem does not lie on the policy itself. It’s actually on how people acquire it. Moneylenders give PPIs to clients without any thought on whether or not they need it. Most of the time, they’ll tell their clients that no loan will be present without getting the policy as well. Or in a deeper sense, they’ll just give the client a PPI without the latter ever having knowledge of its presence. And in the end, clients will be wasting valuable amounts of money on something that will only be voided! The usual groups of people that fall victim to the conspiracy are the self-employed, the students and recent graduates, and retirees. All of which have in no way any need for the policy. Continue reading

How to find out if you’ve been mis sold PPI

The popularity of Payment Protection Insurance has caused quite a rush for people who want to avail of the service. Because Payment Protection Insurance allows for a convenient way to secure payments for any loans that you might be purchasing, they have become an ideal choice of safeguarding any loans that people are securing nowadays. Whether one will be getting loans for their vehicles or their homes, it has been advised that securing Payment Protection Insurance is the best option for everyone.

But because of its popularity, most people often do not realize that there can be drawbacks to such. Because the service of Payment Protection Insurance is basically an option that will provide more revenue to creditors, it makes their selling such a priority that some people who may not even opt to apply for the insurance end up having it without their knowledge. There are also some people who will get Payment Protection Insurance without any clear clues on what it is really about. To find out if you are one of them, here are a few things that you could look into

How to Find out if you Have Been Missold Payment Protection Insurance

The first thing you would need to look into is the process in which you have been offered. If you have been given no choice about taking out PPI, then you have been missold Payment Protection Insurance. Another thing to figure out is if you have been informed of the basic qualifying factors that Payment Protection Insurance has, like exclusions for pre-existing medical conditions. If you haven’t then it is another sign. Continue reading