PPI policies are better when bought as a stand-alone policy

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Yossarian Smythe has 108 Published Articles

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PPI policies are better when bought as a stand-alone policy

Posted On : Jun-28-2010 | seen (395) times | Article Word Count : 583 |

Remember the last time you were sold something by a customer care representative of your credit card over the phone? The answer is probably a no. This is because most of us are too busy or occupied to even notice that we are being charged for something that may not be needed after all. This holds true with certain banks that attract us with additional offers on our loans that might claim to be beneficial for us. It might be truly advantageous, you never know, but the real question is, are you getting back a substantial worth for your money?

So here is this particular insurance policy that claims to cover all your debts in cases of financial emergency like sudden unemployment, sickness or accidents. It is called the Payment Protection Insurance (PPI) policy. It sounds good that you have an option of this form for those unseen circumstances of your life. You may think that the bank offering the loan is well concerned about your convenience and offers you something like this alongside the loan so that you do not need to go through the hassle of finding stand-alone policies of the same kind. You might think that your work is made easy since the bank itself handles your insurance along with the loan payments.

Unfortunately, this is not the case in most scenarios, since it has been found that most of the banks offering this PPI plan seem to earn significant profits both for the loan provider and as commissions for agents who sell them. Most often than not, the customer is missold the PPI with insufficient exchange of information eventually leading to a lot of confusions and disappointments at the actual time of claiming the cover. Sometimes the customers are sold this as a part of the loan at the start by declaring dubious claims like the PPI’s would help the customer acquire lower interest rates on their loan. It is portrayed to the customers that the PPI is a significant part of the loan that is a necessity and thus sold to millions of customers. The ratio of the people who actually might have a use for this policy is too less. People who are unemployed, self-employed, retired or having a pre-existing medical condition are not liable to use this policy and yet these people are also sold the policy without a proper means of communication on the part of the bank.

Although, the government has posed a ban on the selling of these policies via the lending institutions on their loans there are about 20 million active PPI policies among the many customers in the UK. If you are one among them then you must consider going for a PPI reclaim. PPI reclaim may involve the loss of the insurance policy from your loan so you may need to scrutinize whether you really need this PPI policy or not. The policy is not a total waste of money but the rates at which they are offered by the banks can be avoided if you can get away with having the policy cancelled and opt for a stand-alone policy that might cost you one-third the cost of the original PPI. Research on the best offer on stand-along payment protection policies that may also give you the freedom to choose from either a short term or long term version and various other factors rather than being curtailed to use the exorbitantly priced PPI policy of the bank.

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<h1>PPI policies are better when bought as a stand-alone policy</h1> Author: <a href='http://www.articleseen.com/profile_Yossarian Smythe.aspx'>Yossarian Smythe</a> Remember the last time you were sold something by a customer care representative of your credit card over the phone? The answer is probably a no. This is because most of us are too busy or occupied to even notice that we are being charged for something that may not be needed after all. This holds true with certain banks that attract us with additional offers on our loans that might claim to be beneficial for us. It might be truly advantageous, you never know, but the real question is, are you getting back a substantial worth for your money?

So here is this particular insurance policy that claims to cover all your debts in cases of financial emergency like sudden unemployment, sickness or accidents. It is called the Payment Protection Insurance (PPI) policy. It sounds good that you have an option of this form for those unseen circumstances of your life. You may think that the bank offering the loan is well concerned about your convenience and offers you something like this alongside the loan so that you do not need to go through the hassle of finding stand-alone policies of the same kind. You might think that your work is made easy since the bank itself handles your insurance along with the loan payments.

Unfortunately, this is not the case in most scenarios, since it has been found that most of the banks offering this PPI plan seem to earn significant profits both for the loan provider and as commissions for agents who sell them. Most often than not, the customer is missold the PPI with insufficient exchange of information eventually leading to a lot of confusions and disappointments at the actual time of claiming the cover. Sometimes the customers are sold this as a part of the loan at the start by declaring dubious claims like the PPI’s would help the customer acquire lower interest rates on their loan. It is portrayed to the customers that the PPI is a significant part of the loan that is a necessity and thus sold to millions of customers. The ratio of the people who actually might have a use for this policy is too less. People who are unemployed, self-employed, retired or having a pre-existing medical condition are not liable to use this policy and yet these people are also sold the policy without a proper means of communication on the part of the bank.

Although, the government has posed a ban on the selling of these policies via the lending institutions on their loans there are about 20 million active PPI policies among the many customers in the UK. If you are one among them then you must consider going for a PPI reclaim. PPI reclaim may involve the loss of the insurance policy from your loan so you may need to scrutinize whether you really need this PPI policy or not. The policy is not a total waste of money but the rates at which they are offered by the banks can be avoided if you can get away with having the policy cancelled and opt for a stand-alone policy that might cost you one-third the cost of the original PPI. Research on the best offer on stand-along payment protection policies that may also give you the freedom to choose from either a short term or long term version and various other factors rather than being curtailed to use the exorbitantly priced PPI policy of the bank.About the Author: The author of this article knows all about <a rel="nofollow" href="http://www.realclaims.co.uk/">PPI</a> and has written many articles on <a rel="nofollow" href="http://www.realclaims.co.uk/ppi-claims.asp">PPI Claims</a>. And the author has an excellent knowledge in <a rel="nofollow" href="http://www.realclaims.co.uk/ppi-claims.asp">PPI Reclaim</a> and has been in finance sector for years. Article Source: <a href='http://www.articleseen.com/Article_PPI-policies-are-better-when-bought-as-a-stand-alone-policy_23572.aspx'> http://www.articleseen.com/Article_PPI policies are better when bought as a stand-alone policy_23572.aspx</a>

Article Source : http://www.articleseen.com/Article_PPI policies are better when bought as a stand-alone policy_23572.aspx

Author Resource :
The author of this article knows all about PPI and has written many articles on PPI Claims. And the author has an excellent knowledge in PPI Reclaim and has been in finance sector for years.

Keywords : PPI, PPI Claims, PPI Reclaim, Miss Sold, Claim back credit card, Debt, Mortgages, Store Cards, Loans,

Category : Finance : Finance

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