Life is an ongoing process. Having said that, we mean, changes are inevitable here and in many a case, changes are unpredictable too such as the death of the sole earning member of a family. In a situation like this, everything seems to be going haywire. What if a similar incident occurs at your home? Well, you have reasons to smile if you had a PPI claim on your side.
What is PPI claim?
To begin here with the right mindset, PPI stands for Payment Protection Insurance. Therefore, a PPI claim essentially connotes a claim under the PPI that your parents might have taken against the mortgage loan, for instance. However, the scope of PPI is far bigger than you might know today. Having said that, we mean, unlike the income protection insurance, a PPI deals with multiple loans such as the car loan, home loan and the consumer loan. Therefore, the scope of PPI is huge befitting one’s unique interest and a claim here means making the payment of the unpaid loan amount to the loan issuing company on behalf of the borrower.
The most interesting part here is that the PPI cover varies on a case to case basis. Having said that, we mean, the cover under this insurance is flexible and it usually stretches up to 12 months or so. However, if you have taken PPI against your credit card, the insurance cover here would mean a protection up to the minimum monthly payment amount. Therefore, double check your powers and privileges under a PPI before you apply for the next consumer loan under it.
The USP (Unique Selling Proposition) of a PPI:
Securing your family: When you take a mortgage loan, the loan agreement that you sign with the financing company or the bank says that in the case you fail to repay the loan amount, the financer will have the sole discretion of selling the mortgaged property with a view to realising the unpaid loan amount together with the accrued interest. In the event of the death of the borrower, palpably the sole earning member of a family, people there would find it difficult to make odd ends meet on an everyday basis. In such a case, repayment of a loan becomes impossible. That’s where PPI comes to your rescue. Hence, PPI can be termed as a unique solution that safeguards the borrowers and their families at the time of distress and sorrow.
Tax benefit: This is yet another benefit of PPI. The insurance amount that you pay here is eligible for exemption from the total taxable income. Thus, you can proactively save tax here.
Affordable cost: PPI doesn’t cost a fortune to you. You will find many companies selling the PPI in any market. Compare the offers and buy the one that suits your purpose.
Like the five fingers of your hand, there are multiple insurance products available in the market. It is your ingenuity how you will take a PPI claim to your advantage. In other words, how you do is equally important along with what you do here. Therefore, take every step decisively, especially with regard to the prevailing insurance policies in the market and enjoy the journey of life.