Banks have started pulling the plug on publicising their protection products especially payment protection insurance. The notorious insurance policy that had left millions trying to claim back worth £3,500 of payments continues to plague the UK’s financial industry. To avoid facing the same issues in the future with other financial products, here are three things you need to keep in mind.
Do You Really Need It?
If you’re taking out financing, make sure to check your credit scores beforehand. A check allows you to see if the industry is confident in your ability to make repayments for a new loan or mortgage. Doing so allows you to see if you really need any PPI or insurance policy that repays your financing.
No Specific Brand
If bank employees tell you a specific insurance policy is needed for a financing and your credit scores indicate you have a below-average risk rating, then you must take out a policy. However, the bank cannot specify a policy they offer or any brand they refer to explicitly. A single insurance product cannot qualify all customers in the same way.
Read The Terms and Conditions
Lastly, before taking out a financial protection product, see if the product’s terms and conditions make you eligible to make a claim should you need it. Millions of UK consumers mis-sold PPI were ineligible upon purchasing their insurance. While majority of these cases were due to unscrupulous sales tactics, it is better to be safe than sorry by reading the terms and conditions before leaving a signature.