Most loan companies have now been weeded out when it comes to misselling payment protection – but there are still a few of them who are clever with the way they word the offering.
Payment Protection Insurance is also known as PPi – PPP – Finance Protection and Loan Protection. but, at the end of the day it boils down to the same thing – they are an insurance policty which covers you for some critical area’s like Life Insurance, Sickness Insurance and Redundency Cover.
Some people prefer to call it ASR – Accident, Sickness and Redundency.
Any will do, becuase what we want to explain to you here is that it sometimes doesn’t go that extra mile, when you take into account the clauses they use to restrict the chance of the insuarnce company paying out.
Accident Cover
Some will cover pretty much any eventuallity, whilst others use some tight guidelines to make sure they are not going to hang themselves. Extreme Sports is one of them, but then you need to define the wording “extreme sports.” You could be a real hot Kite flyer and get hit by another persons Kite – and that could be classed as an extreme sport.
Jumping out of planes with a cotton sack on your back – extreme isn’t the words I would use, probably buts would be better. Racing a Quad Bike, Motorcross – in fact anything that means venturing out of your own back garden could be classed as extreme.
Always make sure you read the fine print!
Sickness Cover
How do you define sick? Well, in my book it means calling god on the porceline phone, whilst the insurers would just laugh that one out of court. Sickness cover is something where by you are away from work for a period of time determind by the agreement you sign
Always read the agreement, because this can vary so much between insurance companies, from a few days – to a few months! (Yes, I did say a few months.) If they don’t offer cover from the first few days, then you can safely say that they have other corners buttoned down too, so give them a wide stance.
Redundancy Cover
WOW – now this one has been changing a lot lately with the amount of people who have been made redundant, and not received benefits from their insurance policy. Again, like each of the other sections of cover, read the small print and see exactly what you are covered for, and what you are not!
Some will cover you if you have been with the company for a few months, whilst others insist on a completed duration of employment no less than 12 months, and some longer than that.
Problem is, if you try and come the clever, they will go back to the agreement and see what you inserted in your “working status.” And, if you put you have been with the ocmpany for more than 12 month, yet you place a claim and they find out you have been there for a considerable amount of time less – they can terminate the agreement and press charges for potential fraud.