Payment protection insurance (PPI) is also known as credit protection insurance or loan protection insurance. It is basically the payment that one makes in advance while taking a credit or loan which ensures that in case of critical situations like if the borrower dies or suffers from terminal illness, then for a particular period say about 12 months the repayment of loan is taken care of. This way the person gets some time to arrange for the amount. It is a very useful insurance which is sold by most of the banks while giving loans. It can be taken for different types of loans like house loan, car loan, furniture loan and many others. It gives time to the person as for specific period the loan amount is paid which is cover under this insurance. But is everything goes well, and then at the end of the loan, the customer has to claim the PPI. This is very important and different companies can help you with the whole process. But be sure that these are genuine ones and won’t cheat you.
Making PPI claim:
It is necessary to know the basics of making a PPI claim. Sometimes at the time of taking the loan, the company could mis-sell you the PPI and one can claim it later on. In such cases it becomes very important to retrieve all the information right from the start. Here are some points to keep in mind:
- Check all the documents which were made during taking the loan. Read all the clauses properly. Check the policy and see what was written during that time.
- Send the letter to the claim company asking for the refund.
- Wait for their reply. If they do not reply within 8 weeks then you can take action against them.
So next time; please keep all the important documents ready before making PPI claim.
Calculate PPI refund:
Now the next important thing is how to calculate PPI refund. It is not as complicated as it sounds. You can calculate it easily with the help of Payment protection insurance calculator. These are available online too where you have to simply put the figures and it will automatically calculate PPI refund for you. For the calculation process, the first thing one should do is find out for which type the loan was taken, whether the premium was paid monthly, quarterly or yearly – the duration for which the loan was taken and the interest rate that you were paying during all these years. All these data will help you to calculate PPI.
Online Payment protection insurance calculator:
As mentioned earlier, now a day’s very good and accurate online calculator is available. They allow one to calculate the refund amount easily. Only one should know that you have been mis-sold PPI. Actually many people are not aware of this fact, hence they do not claim PPI. An online Payment protection insurance calculator is also not 100% accurate; however, it definitely helps with the calculation.
How to calculate the PPI using the calculator?
All you need to do is to remember three things, the loan amount, the duration and the interest rate. These are three key things used for calculating PPI to the most accurate level.
So next time make use of the online ppi calculator and claim your PPI refund. One can claim PPI for all types of loans, mortgages, credit cards. So do not leave them and claim them wherever it was applied while one had taken the loan. Ideally, a payment protection Insurance is a great way to keep you safe from all kinds of financial burdens. Once you have it done, you can always claim and get your refund.