Tips to make PPI easier to understand

Find out more about Payment Protection Insurance.

08:58 10 May 2013

Nationwide struggled with certain aspects of its financials, but was happy to announce it was able to lend funds to many first time home buyers. Some of the losses they did experience were due to the Payment Protection Insurance issue.

 

What is the issue with Payment Protection Insurance?

 

Some customers felt they were not given appropriate information regarding Payment Protection Insurance (PPI) and were improperly coerced into purchasing the product.

 

What exactly is Payment Protection Insurance?

 

PPI covers partial, or possibly full, loan payments on a monthly basis for a set period of time.  It is a special insurance cover that you would need to select and meet certain criteria in order to qualify to receive the insurance benefits.

 

What might prevent receipt of benefits?

 

If you apply for Payment Protection Insurance under when you could be considered in any of these categories, you will most likely never be able to get benefits for this type of insurance, so be sure to find out and get the policies in writing as well.

 

• Unemployed
• Self-employed
• Contract worker

 

Is Payment Protection Insurance required?

 

No, PPI is not required, but is often a low cost way to ensure that you’re able to maintain your monthly payments on your loans such as vehicle or home loans. Even credit card loans may offer PPI.