Types of PPI
Payment Protection Insurance can be sold under a number of different names, although the principle behind all these policies is essentially the same. Here are some of the more common names under which you may have purchased a policy – and for which we may be able to obtain you a substantial refund.
Accident Sickness & Unemployment Protection.
Commonly known as ASU insurance, these policies are often sold alongside mortgages or more substantial loans, and claim to cover your repayments should you become unable to work through unemployment, injury or long-term illness. However, loopholes often mean that the promised tax-free monthly payment fails to materialise when the worst happens. For instance, the small print usually excludes pre-existing and recurring medical conditions, whilst stress and back problems (two of the largest causes of absence from work) are frequently not covered. What’s more, if you’re self-employed, you will probably have to cease trading altogether in order to make a claim.
Loan Payment Protection.
Personal Loan Protection (PLP) is one of the most common forms of PPI, and also one of the most expensive. This sort of insurance can be sold alongside almost any loan, whether secured (tied to an asset, such as your property) or unsecured. Frequently, people take out this sort of insurance when making a major purchase such as a car or a new kitchen, or it may be offered alongside a credit card. In fact, you might not even know you agreed to this sort of insurance, but could be paying the premiums regardless! The sad fact is that the insurance can vastly increase the amount you owe – for one loan of £5000, the payment protection premiums totalled £1300 or a full 25% of the entire loan.
