PPI is Not Only For Mortgages
Posted on 06. Feb, 2012 by admin in Insurance
PPI is about more than just mis-sold policies and expert agencies trying to get people’s money back. Although payment protection insurance (PPI) is certainly considered to be most commonly sold alongside mortgages, it is not mortgage only insurance. PPI policies can be sold on a variety of auto and personal loans as well as credit cards. Even your income can be insured.
The three basic types of PPI are:
- Income payment protection insurance
- Mortgage protection insurance
- Loan payment protection insurance
Regardless of the type of loan being protected, the purpose of PPI is the same. Paying your debts when you are not able due to illness, accident, death or loss of employment. Each of the three types protects a certain type of debt.
Not only the most common type of PPI, but arguably the most important as well, mortgage protection insurance can assist you by paying your monthly mortgage payments.
Loan payment protection insurance policies can help cover debts that you hold with credit cards. This insurance covers payments on your monthly balance until you are able to resume making the payments.
Income payment insurance is designed to supplement your monthly income following a job loss. It is unlikely that it would equal your previous salary, but the funds that would be made available would allow you to meet your expenses until a new job is secured.