Like my blog? Sign-Up for a FREE newsletter! OR Give a ‘Like’ to my FaceBook Page
If you are not educated about personal finance and insurance, you may end up paying for it in the long run. People who have problems with personal finance will almost always end up in debt. Insurance is a big part of personal finance. For example, if you home is not properly insured, any damage it sustains can have a huge impact on your financially. Taking out a loan is something almost everyone has to do at some point and time. Taking out Payment Protection Insurance (PPI) on your loan is a smart thing to do. In the event of death, unemployment, loss of work due to injury or illness, your loan payments are covered for a certain period of time. So if you have a loan out for an automobile, it will not be repossessed due to non-payment if you are injured and cannot work. There are some things to consider when dealing with PPI. Sometimes PPI claims do not go as smoothly as they should. That’s because PPI policies can be misrepresented to the consumer. It is important to thoroughly go over any documentation before signing up for a PPI policy. If you were sold a PPI policy under misrepresented terms, it is possible for you to reclaim PPI payments.
Here are some things to consider when dealing with PPI policies.
1. Know the full cost of the PPI upfront. Some lenders will try to hide the full cost of the policy.
2. Know if the policy has an upper age limit. Lenders have been known to sell the insurance to those who are above the age limit. Claims will then be denied.
3. Do not take out the policy if you have an alternate form of insurance that would do exactly the same thing.
4. Make sure the price is fair. Ideally, it should not be over 23-25% over the amount of the debt.
By following the above advice, you should do well when it comes time to take out a loan. People take out loans for everything from automobiles to houses, and it is important that you take every precaution to insure yourself in case something bad happens. It is also important that you make sure that your insurance coverage is on the up-and-up.
About the author: Neo Zack is a Tech writer from London with an interest in topics relating to Insurance, Finance, and green living. You can follow him @financeport on Twitter.