What Is Payment Protection Insurance And Does It Have Any Risks I Should Be Aware Of?
Nobody can predict what kind of financial problems they may run into in the future. You may be doing fine taking care of your family and paying all of your bills, but something could happen such as becoming jobless, getting disabled by a terrible accident, or being struck down by a grave illness that could shake your financial stability to the core and prevent you from being able to pay your bills. This is why it is important when dealing with lines of credit to be careful from the very start.
One of the programs available to help people is called payment protection insurance. But what is payment protection insurance you may ask? It is an insurance policy that is attached to a specific line of credit, such as a credit card, store card, mortgage, car loan, or other loan that will provide you with a safety net in case of accident, illness, disability, unemployment or hospitalization so you wonâEUR(TM)t have to worry so much about making those payments, since they will cover your minimum payments until you are able to start earning again and can handle the bills on your own.
Be Aware of the Facts Regarding Payment Protection Insurance
There are some facts you should be aware of regarding payment protection insurance before you purchase a policy. First off, you will be required to maintain your monthly average balances, typically with a £1000 minimum and a £5000 maximum. Payment protection insurance will cover your minimum payments for a specific period of time, typically between 10 and 12 months. After that, you will have to find another way to make your required payments. There are also eligibility requirements for payment protection insurance that you will have to meet, such as being a UK citizen and being at least 18 years old. However, you should also be under 65 if you are a male and under 60 if you are female. Your current employment will require you to be working at the same position for a minimum of 6 months. Then there are the normal terms and conditions that you will have to agree to as well.
Situations such as temporary unemployment and voluntary unemployment will violate the terms for the payment protection insurance, and they will not cover your payments. If you sustain an injury that is self-inflicted then you will also not be able to make a claim.
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One of the programs available to help people is called payment protection insurance. But what is payment protection insurance you may ask? It is an insurance policy that is attached to a specific line of credit, such as a credit card, store card, mortgage, car loan, or other loan that will provide you with a safety net in case of accident, illness, disability, unemployment or hospitalization so you wonâEUR(TM)t have to worry so much about making those payments, since they will cover your minimum payments until you are able to start earning again and can handle the bills on your own.
Be Aware of the Facts Regarding Payment Protection Insurance
There are some facts you should be aware of regarding payment protection insurance before you purchase a policy. First off, you will be required to maintain your monthly average balances, typically with a £1000 minimum and a £5000 maximum. Payment protection insurance will cover your minimum payments for a specific period of time, typically between 10 and 12 months. After that, you will have to find another way to make your required payments. There are also eligibility requirements for payment protection insurance that you will have to meet, such as being a UK citizen and being at least 18 years old. However, you should also be under 65 if you are a male and under 60 if you are female. Your current employment will require you to be working at the same position for a minimum of 6 months. Then there are the normal terms and conditions that you will have to agree to as well.
Situations such as temporary unemployment and voluntary unemployment will violate the terms for the payment protection insurance, and they will not cover your payments. If you sustain an injury that is self-inflicted then you will also not be able to make a claim.
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