Can I Still Buy PPI?
08 June 2015
Is it the worst policy ever invented or can some people benefit
from buying it?
Payment protection insurance (PPI) as a product has been hit
hard by the mis-selling scandal and it seems that many people are
still confused between the product and the way it was sold.
So, is PPI a valid policy for many people? How do you know it
is the right policy for you?
As with all insurance policies, there are various factors to
consider before you purchase an insurance policy, and the same is
true of PPI. Everyone's circumstances are different and thus it is
essential that you consider every policy in relation to your own
needs and wants…
- Appropriate or not? - deciding if PPI is right
for you is about understanding if the policy offers you the cover
you need and want. In many mis-selling cases, customers did not
need PPI as they had cover provided already either through another
insurance policy, for example, or with a benefits package with
their work. Take time to consider the bigger picture of your
financial situation and what policies fit what you need, rather
than making your situation fit the policy.
- Cost - clearly, the amount you pay for the
policy is important and, as with all insurance policies, there is a
rule of thumb that you can use: the more the policy costs, the more
it should do. Basic insurances only cover the very basic of issues
and thus, may not be suitable. However, if the policy seems
expensive make sure that the cover it offers is comprehensive.
- Pay-out rate - if you are buying an insurance
for specific reason, taking time to research the pay-out rate for
that particular type of policy with the company you are thinking of
buying it from, is one way of ascertaining how good the company is
at working with customers and their situations. PPI initially had a
successful pay-out rate of 15%, very low when you consider that
other types of insurance policies, such as car insurance, pay-out
in over 80% of cases.
- Other insurances first - but, financial
experts agree that the best move is to make sure that you have
other kinds of insurances first. From a budget point of view,
ensuring you have good deals on car insurance, contents insurance,
house insurance (if need) and so on are more of priority than a PPI
If you are concerned about protecting repayments on loans and
credit cards, check with an independent financial advisor as to the
best way forward for you.
If you think you could be owed PPI compensation, seek help from
Scottish PPI Claims.