Loans Section

Save Money - How To Buy Great Value Payment Protection Insurance (PPI)

One of the biggest scandals in the loan business is Payment Protection Insurance (PPI). Basically the banks and finance companies are stitching their clients up by selling very overpriced policies.

So what is PPI? Basically it's an insurance policy that keeps up loan or credit card payments in case you lose your job or cannot work perhaps because of a medical condition.

PPI in itself is not a bad idea and many people feel very comfortable with it in place. But the big secret with PPI is that it’s just an insurance policy which means you don’t have to buy it from the person who’s offering you the loan. It’s sort of like a home insurance policy, does it really matter if you insure your home with Direct Line or Norwich Union as long as it’s insured at a comptetive price.

Hence, those who realise this and still want PPI can source their own policy from a cheaper provider.

• To find out just how profitable Payment Protection Insurance is for the banks read this InvestorProfit Article - Click Here

Do You Need PPI?

For many people the simple answer is no however you'll often find that banks will not loan money without it. PPI is so profitable for them that they’ll often try and force it on customers using all sorts of half truths and pressure (the salespeople are on big bonuses for every policy they sell).

Where To Buy Cheap PPI Cover

Check out the website BritishProtection.com which offers fantastic deals on PPI. For example -

• Take out a 5 year loan of £7,500 though Marks & Spencers and the PPI adds a further £31.55 a month or 21%
• But the BritishProtection.com website offers exactly the same PPI cover for around £11 a month, nearly 2/3rds off
• This will save in excess of £1,200 for the life of the loan

Summary

Don't get ripped off with Payment Protection Insurance. Understand it, decide if you need it and then shop around for the best quotes. Also note that PPI policies can be used for Mortgage Protection Insurance as well as Income Protection Insurance and the BritishProtection.com carries details on these types of policies.

See Also

• BritishProtection.com
• Good InvestorProfit.com article on PPI
• Consumer Advice - British Insurance Brokers' Association (Biba)
• Find's List of Loan providers