Many financial institutions are selling payment protection insurance (PPI) to their clients without their knowledge in the time of providing loan. They are getting sign for the insurance and get money regularly for the insurance. Individuals also pay certain amount to those financial organizations in the name of payment protection insurance but they do not consider about the purpose of payment protection insurance. Actually it is being a common procedure which is followed by many financial institutions in the recent days. The borrowers should get to know about the payment protection insurance and its advantages and disadvantages. If you have obtained loan from any financial institution then you have to confirm “Have I got ppi”.
Why Payment Protection Insurance?
You may wonder why the financial institutions are selling payment protection insurance for you. It is because the financial institutions have major benefit in selling the insurance to you. For example, if you are not able to return the amount due to any reason the lender will utilize the insurance policy and its amount to compensate the loan amount that you have obtained. This will ensure the return of the loan amount to the financial institutions therefore they do not have to concern about anything even if you do not repay the amount.
You may ask whether you have any benefit in purchasing this payment protection insurance. Obviously you have some advantage in purchasing the insurance. Due to certain reasons, you may not able to return the loan amount. In such situation, the financial institution will force you to give back the amount hence you will have to struggle a lot. But if you have the payment protection insurance, you do not need to worry if you face such critical situation and could not repay the loan. The lender will automatically take the insurance amount therefore you do not have to give anything. However you will have to pay insurance due properly in order to keep the insurance active.
Get PPI amount
The borrowers who cannot give return the loan amount can let the lender to use the payment protection insurance amount. But those who paid the loan properly could not let their amount to someone. They have the right to claim the payment protection insurance amount. Once they return the loan amount, they can visit the financial institution and take needed actions to get back the insurance amount. Most of the individuals do not think about their insurance amount that they can claim after the loan. People whoever purchased payment protection insurance while getting loan should think “Have I got ppi”. If they did not get that amount, then they should contact the professionals in the financial institutions and get to know about the procedure.
The professionals will definitely help the individuals in this case. But in case if the lender does not respond properly for the client’s approach, then the individual can make a complaint against that particular lender. He or she is able to get the insurance amount with the help of the respected authority.