Payment Protection Insurance policies sold along side personal loans, car loans or credit cards are often very expensive and totally inflexible. If you have a PPI policy, particularly a single premium PPI policy (where the premium is added to your loan at the beginning and then interest is charged on top), you might want to consider whether this is the best policy for you and whether there are any other options on the market that would suit you better.
Payment Protection Insurance as a concept is not necessarily a bad idea and can be suitable for many people. It is intended to help you maintain your monthly loan repayments if you involuntarily lose your job or are unable to work due to sickness or disability, however many policies sold by banks and loan companies are overly expensive and inflexible and only cover the repayments to the loan or account they are connected to.
What are the alternatives?
Income Protection insurance policies, which replace up to 60% of your gross annual income, are a much more affordable and flexible type of insurance. Income Protection policies do not cover just one loan or credit card, they pay you a proportion of your income to help you maintain your monthly repayments when your income is lost due to involuntary unemployment, sickness or disability. Instead of paying a premium to cover your bank loan, another premium to cover your credit card and a further premium to cover your car loan you pay one premium each month for your Income Protection policy that may be less than one or all of the premiums you are paying to your lenders. Income Protection policies can run for as long or as short as you like and if your income changes you can change the level of cover you have quickly and easily.
If you want to see how much you could save and what the alternatives to PPI are, visit the Protect Your Bubble.com website by clicking on the logo below and getting a FREE and without obligation quote.
