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Archive for tag: Can I Still Buy PPI

Can I Still Buy PPI

… and other questions about this style of policy and your situation.

Payment protection insurance (PPI) was a policy that was to act as a safety net. The idea was that should you be unable to make repayments due to loss of income, this policy would kick in and make those repayments for you.

Your credit rating would not suffer and it would help you out of a tight spot.

The reality, however, was very different. The terms and conditions was so tight that it is estimated that the 'old style' PPI covered only 15% of claims that were made against it. The remaining 85% found that the policy they had been paying for was useless.

When it comes to insurance products, the best advice is simple…

You match the policy to your circumstances. Every policy should fit and be tailored to your needs. PPI itself was not so much at fault, rather it was the way it was sold.

The one size fits all approach does not work when it comes to insurance because everyone circumstances are different. For example…

  • Pre-existing medical conditions - if you have a medical condition that you know about and live with, then any type of income protection insurance needs to cover this. You would pay more than someone who does not have this kind of cover. In effect you would pay slightly more, simply because the risk of you not being able to work due to this condition is higher. You are not uninsurable, but you will pay more than someone who has no know existing medical conditions. It stands to reason.
  • Benefits package - but, there are some people who did not need all of the cover that PPI offered them, thus they were paying for duplicate policies. Some people have benefit packages with work. Hence, they can have 3 months full pay whilst on sick or longer in some cases. These packages are all ways that employers use to attract the right candidate. Their need for PPI is superfluous in some cases and thus they need an insurance policy that covers the period after their employee benefits ends.

From these two example we can see that customers need insurance products that are responsive to their needs. We all have different financial circumstances, different levels of savings, different employers and income levels. Thus, the blanket selling of PPI spelled disaster.

The likelihood is that you have a compensation claim for mis-sold PPI. And we can help claim this compensation on your behalf. Why not call us?

Thinking of buying income related insurance? Seek independent financial advice to get the right policy for your circumstances.