Do you really know the details of your payment protection insurance policy and how to even make a claim should you need to?
The banking industry is left with a compensation bill that will run into the billions. But do you know how payment protection insurance works? If not and you have a policy then you could be liable for compensation now.
Income Protection Insurance policies start paying out once you have been off work for an unbroken period of time, typically anywhere between one and 180 days. As with other insurance products the longer you go without taking payment – e.g 180 days compared to 30 – the amount you pay for your payment protection insurance will be reduced.
Some providers let you vary this excess period, which can be very useful if your employer has a good sickness pay scheme of their own.
If, for example, your company pays sick pay in full for two months then you would not need your PPI policy to start paying you until after this two month period.
Think about when you would want the cover to kick in before buying your insurance policy.
Policies usually only pay out for 12 months, but some do pay out for longer – up to 24 months. Although it will reduce the amount you pay for your insurance, do you really want cover for less than 12 months?
Think about how long you’ll want the peace of mind of payment protection insurance and try and find a policy that best suits your needs.
How much you pay for your payment protection insurance will depend on a number of factors that include your age and what you do for a living.
Obviously the more high risk a job for injury or ill health, the more your insurance will cost.
The same is true of your age – the older you are the more you will probably have to pay. The reason for this is that, as many older people can testify, the older you get the harder it can in general be to find a new job, and you are also more likely to fall ill and need to make a claim on your payment protection insurance.
If you think you have a payment protection insurance policy in place that will not provide the necessary cover you think you need, then there is a distinct possibility that you have been mis-sold PPI and could be liable to claim compensation now.