The first though that strikes when you plan for Payment protection insurance is, Do I really need it? It is always necessary to consider the worst case scenario where your income may dry up. At such instances, will you be able to meet up with your borrowing commitments? There is a condition where your spouse may be a working individual whose paycheque can be utilised in order to cover your repayments or even the savings account can be utilised.

However, if you are actually worried about the repayments that have to be made on time then you need to plan for a securing program. As it completely rely on your financial circumstances and the debts that you owe. These PPI claims are at reach for all borrowers who are meeting the eligibility criterion.

Here are some important things that you need to know about PPI claims:

  • If the life span of PPI insurance is six years, which means it is matured and will automatically qualify for claiming purpose. As there is no limit of time for purchasing the policy, it allows you to claim older ones.
  • All the accounts on which you have secured PPI can be claimed without any restriction to a particular type or particular account.
  • Through a credit report it is possible to obtain all the active accounts over last six years. Only through acquiring a copy of credit report accurate details of your claim can be gained.
  • There is a possibility for claiming your account if you had PPI in the past and currently paying your debt. However, it should be acknowledged that the lender is responsible only to pay your outstanding balance but not refunding it.
  • PPI can be displayed through various terms that include protection policy, cover policy, payment cover, payment policy, retail payment plan, card protection and retail payment cover. While you are reviewing your policy search for these terminologies which means that you have secured your payment through it.
  • The credit issuing companies are responsible to provide you with the paper work, so if you don’t find any then there is no need to panic. As they are compelled at your request to issue the necessary paperwork.
  • If the original lender is no more in the position and the business is purchased by some other lender, still you can claim your policy as the new business has to take responsibility for the old accounts.
  • It is uncommon to face any difficulties in the claiming process, however if you face any then you can contact Financial Services Compensation Scheme that will give the right judgement.
  • As the claim itself is a tax exempt, there may be a necessity to pay tax only on the interest that you receive on the claim that you have made.

About the Author:

My name is Sarah.I am a tech writer from UK. I am into Finance.Catch me @financeport

Image Credit: SalFalko