Finding Payment Protection Insurance Online

Payment protection insurance (PPI) is a plan that is often sold together with a mortgage, loan or credit card. PPI is there to cover the borrower’s payments in the event that they cannot work due to an injury, illness or redundancy. The insurance will make the minimum monthly payments for up to 12 months, after which time the insured will have to find other means to cover their monthly payments.



Mis-Sold Plans

PPI policies have been in the news a lot lately due to the occurrence of "mis-sold" plans. There are many people who were sold PPI plans either without their consent or because they were told the insurance was compulsory in order to qualify for the loan. Both of these situations result in mis-sold PPI plans, and the borrowers are eligible to claim the money back from the payments they made towards the insurance policy.



Can I claim?

If you think you have been mis-sold a PPI plan, you’ll need to write to the seller asking for compensation. If your claim is rejected, your next step is to complain to the Financial Ombudsman Service. Alternatively, you can go through a claims company to help you get the money back. Claims companies employ specialists who know exactly how to get the money back that you deserve. They often charge a small percentage of the money claimed as their fee.



Finding New Insurance

Whether you have claimed back a mis-sold plan, or just want a better rate for your PPI, you will want to shop around online to find a new provider. The company you go through does not have to be the same bank, credit card company or mortgage company that originated your loan. It can be any third party, which is why you will want to spend a bit of time researching your options and shopping around for the best deals.



What To Look For

When you start comparing different PPI plans online, remember to thoroughly read the fine print. One complaint that some people have had about mis-sold plans is that the list of exclusions is too long. For example, your policy should cover you if you get sick, are injured or are laid off from work. It’s also important to keep other factors in mind. For example, if you are self-employed you may not qualify for coverage if you suddenly cannot work. There are other people who may not qualify for coverage as well, such as those who have been unemployed in the last year and people over the age of 50.



While PPI has gotten a bad reputation in recent years due to a few mis-sold plans, it’s still a good option for people who have big monthly payments to make and want peace of mind. It’s a great thing to have in these financially unstable times, and will keep you out of debt and keep your assets safe in the event that you cannot work for a period of time in the future.



Simon Cole is an expert in debt consultancy who is currently researching websites that offer payment protection insurance including many claims advisory experts online.