Is It More Sensible To Purchase Critical Illness Cover Or Payment Protection Insurance?

The advantages of the different payment protection insurance and critical illness cover are of great confusion for some people. On the face of it these two policies seem to offer protection against the same set of circumstances, in particular the illness and injury. People buy these types of insurance because they are concerned about the financial impact of a long lay off from work. They invest in such coverage to protect against unexpected events and potentially life changing.
Before examining the main benefits of the insurance payment protection and critical illness cover, let us first see the main details of each policy. It is important to remember that PPI can protect your finances against a wide range of diseases and injuries. It also offers a long-term protection until the age of retirement. This type of policy will remain valid, whether or not to use it repeatedly.

Clearing Up The PPI Claims Jargon

There is so much jargon related to the burning question of the payment protection insurance that the average consumer is likely to be puzzled. It is ironic then that these are exactly the same people who have a right and a need to know this form of coverage. It is hoped that better understanding is developed in reading the following jargon, leaving people with a better chance to make a claim successfully.

Payment Protection Insurance

For starters, it is necessary to dispel any confusion on payment protection insurance to term. This form of coverage was originally developed as a means of protecting the financial interests of the people in case of illness and injury, but has subsequently been the subject of negative attention. We now know that the PPI was also sold under the names of loan protection insurance and accident insurance, sickness and unemployment, sometimes as a way to trick the unwary consumer.

Premium

In the mistaken belief that the PPI was by far the best protection against unforeseen events, many people paid a monthly premium for their chosen policy. Some have even paid money in a lump sum for a single premium policy, leaving them with interest payable on both the premium and the loan. A significant number of these people have been left significantly out of his pocket when it was found they could not make a claim on the policy they had been sold illegally.