ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Do You Really Need Payment Protection Insurance?

Updated on June 8, 2014

If circumstances affected your ability to earn an income, would you have access to funds that would enable you to keep up with debt repayments? Being unable to work due to an accident, injury or illness can be a nightmare proposition if you do not have savings to fall back on. Payment Protection Insurance (PPI) can meet your payments while you are unable to work but it is not necessarily the best choice for everyone. Here are some tips to help you to decide whether you really need to have PPI cover.

What Is Payment Protection Insurance?

If you are unable to work through no fault of your own, PPI can cover repayments on loan, mortgage and credit and store card debts. It typically covers accidents, injuries and illness but many policies have restrictions that will exclude certain conditions and situations. Unemployment can also be included if you are made redundant, for example. Payment Protection Insurance is often offered alongside loans and credit.


Who Is Eligible for Payment Protection Insurance?

Not everyone will be able to arrange PPI. You will need to be in full-time employment for the most part, which rules out anyone who is self-employed, retired or working on a part-time basis while studying. You may also be ineligible if you are dismissed from your job or if you take voluntary redundancy. It is therefore important to check the small print before you buy any Payment Protection Insurance policy to avoid any nasty surprises if you need to make a claim.

Is It Really Necessary?


Payment Protection Insurance can be an expensive type of insurance to buy and you may be better off using other forms of protection. This can include life insurance, Critical Illness insurance or Income Protection Insurance, sickness benefits that may be available through your employer. You may already have one or more of these in place already, in which it may not be worthwhile arranging Payment Protection Insurance as well.

If you have savings to fall back on, this can also be preferable to taking out Payment Protection Insurance. The downside to this is that you may deplete your savings if you are not able to work for months or even years. There is also the possibility that other problems could occur at the same time, which would further drain your emergency fund. If your savings are not particularly extensive, you may want to look at other forms of protection.

Comments

    0 of 8192 characters used
    Post Comment

    • dippykitty profile imageAUTHOR

      Sally 

      4 years ago from UK

      Agreed!

    • DowntroddenInDC profile image

      DowntroddenInDC 

      4 years ago from Houston, TX

      Almost all insurance is a gimmick to make money for someone. These insurance policies rarely live up to the way they are advertised and explained. They use a lot of puffery and gimmicks to get you to sign the dotted line. You are better off having a emergency buffer fund of 6-12 months of expenses.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)