Business, Legal & Accounting Glossary
When you take out a credit card or loan of any kind, you will normally be offered Payment Protection Insurance (PPI).
This credit card protection will pay your debt if your circumstances change and you are unable to repay it. For example, it could come in handy if you are made redundant, suffer a serious illness or an accident. But compare conditions carefully when taking out a policy, to make sure you understand the clauses and that they suit your circumstances. For example, the self-employed are typically excluded.
PPI will only payout for a set period of time – usually between 12 and 24 months. There is also a waiting time for payments to begin if you do claim on your credit card protection policy.
Also make sure to shop around, as costs vary widely in this competitive market. Credit card protection can be taken out at the same time as the credit card itself, but it can also be bought at a later date. Stand-alone payment protection products can also be purchased from direct providers rather than your credit card provider.
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This glossary post was last updated: 15th February, 2020 | 0 Views.