About
Payment Protection Insurance ( PPI )
What
payment protection insurance covers varies depending on the
sort of repayments the insurance policy is designed to protect,
and on the terms of the insurance policy. The following types
of payment protection and benefits are typical for different
types of payment protection insurance ( PPI ):
Mortgage Payment Protection
This
payment insurance covers your mortgage repayments for a set
period of time. The maximum monthly repayments that the insurer
will make is usually twelve but it can sometimes be 24. This
After this time period you will have to pay your monthly mortgage
repayments yourself. You can normally make more claims later
on but there must always be a gap between them.
Credit and store cards Payment Protection
This
Insurance will usually pay off a percentage of your outstanding
balance or the minimum payment every month for up to a year.
Check the options being offered. You may have to pay any balance
left after this time and you may be able to claim again on
the policy after a period of time.
Loan Payment Protection
This
insurance will cover monthly repayments for the loan usually
for twelve or 24 months. After this time period you will have
to pay your monthly loan repayments yourself. Once again as
with mortgages you may be able to claim again on the policy
after a certain time period.
If
the payment protection insurance for these products
contains life insurance, then that insurance cover will
usually pay off the balance of the debt covered if you
happen to die. If the insurance claim is for disability,
the monthly repayments may be paid to the end of the
life of the loan.
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