Why Not to Pay PPI Payment Protection Insurance
Below is a MRR and PLR article in category Finance -> subcategory Credit.
Why You Should Avoid Paying for Payment Protection Insurance (PPI)
Summary:
To save money on your credit card bills, skip the payment protection insurance (PPI). It's often an unnecessary expense that primarily benefits the credit card company.Why Avoid PPI:
Hidden Costs and Limited Benefits
Many people unknowingly pay for PPI because it's often bundled with other credit card charges. Those who are aware of it may believe it’s essential, thinking it offers complete protection if they lose their job or fall ill. Unfortunately, this is usually not the case. Typically, PPI only covers payments for a limited time, often a year, leaving you responsible for the remaining debt.Delayed Claims
Submitting a PPI claim can be a slow process. You might have to continue making payments out-of-pocket while your claim is being processed. If your situation is temporary, you could be back to work before your claim is even resolved.Costly Premiums
The cost of PPI can range from 70p to 80p for every £100 owed. These charges are often hidden within your credit card expenses and may only become apparent when your debt level is high. This strategy is a way for credit card companies to boost their profits.Specific Situations
- Paying in Full: If you pay off your balance every month, PPI is unnecessary.- Self-employment: Self-employed individuals won’t be covered for unemployment under PPI, making it a poor choice.
Better Alternatives
While seeking financial security with a credit card is understandable, PPI often falls short of expectations and ends up costing you more. Consider other, more reliable options like Pay-protect or Good Insurance. These alternatives can offer better coverage at a reduced cost compared to PPI.By avoiding PPI, you not only save money but also protect yourself from the pitfalls of inadequate coverage. Choose alternatives wisely and ensure they meet your specific needs before committing to any insurance policy.
You can find the original non-AI version of this article here: Why Not to Pay PPI Payment Protection Insurance .
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