Making PPI work for you

With the current furore over the payment protection insurance (PPI) industry, do remember that if you are taking out a loan, mortgage or credit card, despite all the negative press, PPI policies are still a good thing, providing you choose wisely.

To make a PPI policy work for you, it is a case of finding the one that offers comprehensive cover at a relatively low cost.

In cases where you find that you can’t keep up with loan, mortgage and other credit repayments because you have lost your job or are unable to work due to an accident or prolonged sickness, then a PPI policy can literally keep a roof over your head and the wolves from your door.

What you do have to be wary of is the quality of cover provided by policies and the premiums charged as these can vary dramatically. That is why it makes sense to shop around.

Simon Burgess from independent protection specialists BritishInsurance.com says: “Cover can vary dramatically so it imperative that consumers shop around for a suitable policy. They must check what they will and won’t be covered for as well as compare costs.”

Burgess recommends the following pointers in choosing a suitable policy:
• Check out the exclusions to ensure that your particular circumstances are covered
• Look to see whether the insurance covers the whole debt. Check what the maximum and minimum amounts will be.
• When getting credit, do read the small print and check that PPI is not automatically included – it should be optional
• Always get a copy of the insurance document
• Avoid pricey policies from High Street lenders. They can charge up to 80% more in premiums, all of which is commission. Use independent providers who offer low cost standalone policies.