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The Curious Bag
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Payment protection insurance is the form of insurance that protects a person against an inability to pay back a debt due to an accident, sickness, unemployment or death. The insurance is usually provided by banks and other credit providers.
Goal
The goal of payment protection insurance is to cover the cost of a debt when a person is put into a position in which he is unable to acquire the necessary salary to pay back the debt.
Length
The length over which the cost of the debt will be covered often varies from plan to plan but the period of time is usually finite and lasts about 12 months.
Need
Payment protection insurance is not a very popular form of insurance and it can be quite difficult to determine whether this form of insurance is truly necessary.
Other Insurance
Many insurance agents will recommend that you simply invest your money into disability and unemployment insurance as these cover a wider range of situations and are often cheaper.
Rejected Claims
All insurance policies are subject to rejected claims, but it is believed that claims made on payment protection insurance plans are rejected more often than other types of claims, according to loanempire.co.uk.
Source:
Loan Empire: Controversy Arises
Times Online: Reader Guidelines
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