Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Payment Protection - a Guide to Reader

By Connected Claims Subscribe to RSS | January 23rd 2012 | Views:
loading
 
  



What Is Payment Protection Insurance?

Payment Protection Insurance guarantees the repayment of a particular debt in case your financial circumstances change in such a way that you can no longer afford the monthly payments. The insurance then repays your debt as long as needed till you recover. The particular protections may vary but the main ones are: protection against being made redundant, grave illness or serious accident.

In the event of any of the above triggers, you need to file a claim with the insurance company that will then analyze your case and if approved, the repayment of your debt will start immediately. This can protect your from repossession and from ruining your credit score and history by avoiding negative inputs on your credit report.

Do I Need Payment Protection Insurance?

This is a tricky question because nobody NEEDS insurance. Yet, it is advisable to be protected against unexpected events to avoid ruining your credit and compromising your finances. However, the use of payment protection insurance needs to be considered carefully. The reason is simple; protection for default is good only if the payments of that protection don't contribute to your default.

Therefore, you need to consider the affordability of the loan, line of credit or whatever financial product you are planning to insure. If the monthly payments are already too close to your limit, the smartest choice is to try to lower the balance rather than insure the payment. However, if we are talking about an important loan like a home loan, refinance home loan or home equity loan that could endanger your property, payment protection insurance is definitely the smart choice even if the monthly payments rise a bit due to it.

Summing up, when a particular financial product endangers your property and you fear repossession, if the monthly payments of payment protection insurance don't compromise your income that much, it is advisable to pay for it.

But if the financial product is unsecured and there is no risk of repossession whatsoever or if your monthly payments are already too high and any additional payment might trigger a default in a near future, it is better to consider other solutions like debt consolidation or debt settlement prior to insurance.

Connected Claims - About Author:
Payment Protection

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/insurance-articles/payment-protection-a-guide-to-reader.htm

Related Insurance Articles Subscribe to RSS

How can i get dependable credit card debt advice and exactly how could it benefit me?
Published by on March 27th 2012 | Finance
Credit card debt advice is a program provided by debt companies to help those people who are battlin...
 
It is very hard to tell the worth of financial advice
Published by Ross Sorin on March 13th 2012 | Finance
People even in today’s fast times do not know the important of financial advice. The financial adv...
 
The best debt consolidation advice
Published by Fresh Finance on January 19th 2012 | Finance
Many cases of multiple charges, including credit card charges, economical credit score items from lo...
 
Financial advice on Capital management
Published by Abhijeet on January 30th 2012 | Finance
The appropriate admonition in looking addition that can advice your business or aggregation to the a...
 
Some useful information about the tax advice UK
Published by Robert William on February 13th 2012 | Insurance
It is necessary to get proper advice on tax so that you can claim the reliefs in tax from the govern...
 
What is debt advice UK and just how can one get this service?
Published by Deby Suportie on February 15th 2012 | Finance
Debt advice UK has aided many people affected by their debts. Through the years, providers have been...
 
Commodity Bhavishya provide commodity advice on Gold and Silver tips
Published by Alena on December 24th 2011 | Finance
Commodity Bhavishya provide commodity advice and tips on MCX, NCDEX , Nifty FUT services, legs inven...