Is all payment protection Insurance a Scam?
Payment protection insurance is something that is offered to people who take out loans. It means that if they are unwell, die or lose their job or in some other way cannot make their monthly repayments, the insurance will pay out and do it for them.
Payment protection insurance has had a very bad press lately. However, it is not necessarily a bad thing. The reason that people have a problem with it, is when it is missold. This means that they have it included in a loan without them realising it or perhaps without them having the option not to have it. This is when things are not good.
However, it can be a useful thing to have. If there is only one breadwinner in the family and they lose their job or are unable to work, then it will enable you to continue the loan repayments. Some people like the idea of having it and enjoy the peace of mind that it gives to them. They feel that there family is protected and that they will not have so many financial worries if they are in the situation where they are unable to make their loan repayments.
Other people are happy not having the insurance. Perhaps because they are confident with their financial situation, they have savings in case of a job loss or illness or perhaps there is more than one bread winner in the family.
It is worth being open minded about this insurance and decide whether you think it is sensible to take it out in your situation. It can be quite expensive, but it can give you a lot of peace of mind and really help in difficult situations. It is best to calculate how much it will cost you over the long term, to see whether you think it is something that will be good for you.
Do not let someone sell it to you, ask questions and learn about it but make sure that the decision as to whether or not you want it, is yours. Salesmen are wary of overselling now anyway, with the amount of complaints they have had in recent times for this. Therefore, they should not be too pushy and should explain things clearly to you. Just do not be afraid to ask everything that you need to know so that you are fully informed before you sign up to anything, never be left wondering whether it really is the right thing for you.