PPI and Secured Loans - The Small Print
Introduction As your home is put up as security against a secured loan it is nearly always sensible to take out insurance against the payments. All secured loan providers offer Payment Protection Insurance (PPI) and, as the market grows, there are a growing number of specialists insurance providers. This article discusses some of the things to be cautious of when taking out PPI, regardless of which type of provider you use, for a secured loan. PPI - Always look under the bonnet! The Financial Services Authority (FSA), who in January 2005 took insurance under their regulation, demands that all insurance providers provide a ‘Policy Summary' of the insurance they are providing. This outlines, amongst other things, the main features, costs and benefits of the policy as well as significant or non-standard claim exemptions and how long the cover will last for. In the search for getting to grip with the insurance cover for a secured loan the ‘Policy Summary' is normally the best starting point. The ‘Policy Summary' will start by telling you the significant benefits of the cover. It will tell you what you are covered for (for example, serious accident, death, sickness and redundancy). It will also tell you how they calculate the daily rate of cover, the maximum length of time the insurance will pay the secured loan payments, the maximum benefit per month, age constraints and what will happen if you pass away. The ‘Policy Summary' will then tell you about the significant exclusions or limitations of the cover and this is perhaps one of the most important areas to look at when considering taking out PPI for a secured loan. This section will normally tell you which sicknesses are not covered. For example, if you knew about a specific condition within 12 months prior to taking out the loan, you won't be covered for that specific condition. Some insurance policies stipulate they do not cover for backache unless medical evidence via an X-Ray can actually show some sort of defect. It is important to also bear in mind that certain policies will not cover you for stress, stress related illnesses or most mental health problems. Most, if not all, policies also do not cover you if you take voluntary redundancy and will also not cover you if you are forced to take involuntary redundancy within a certain time frame (e.g 60 days) of taking the policy out. You will also find that certain policies will not cover you for the duration any payments are made in place of notice (these are typically called `payments in lieu of notice'). Perhaps the most important things to consider when taking out insurance protection for a secured loan are the things you know about prior to taking out the policy. For example, have you a record of sickness or are there any `rumblings' at work about redundancies? You must be cautious about this and if you are unsure about anything then either read the policy document prior to signing up or ask the insurance provider if they envisage any problems. It is also prudent to get any ‘advice' about such matters down in black and white. It is very worthwhile going through with a fine toothcomb the actual policy document itself. You may find other causes for concern, for example some policies use the fact that you are claiming Jobseekers allowance to govern whether you are employed are not. There are cases when you might not qualify for jobseekers allowance (for example, if you have over a set amount in the bank or have been paid in lieu of notice). This outcome may be that even though you are indeed unemployed the policy will not make the payments against the secured loan. It is worthwhile making sure you know how long the insurance policy will keep up the payments. For example, most policies only cover you for one or two years. After this period you will have to make the secured loan repayments yourself (although you may find, as with most policies, you may be able to claim again on the policy after a set period). A significant thing is to make sure you know the termination policy of the insurance provider. You will typically find that the PPI provider for a secured loan must give you a month in which to change your mind about the policy. This is sometimes referred to in documents, on the Internet and in the Press as a ‘cooling off' period. Remember if you cancel after this time the refund will probably not be in direct proportion to the remaining policy term. So you could get back less than you might expect, or even nothing. This mainly happens because of the way secured loan providers set up the PPI. They will typically assign the policy cost as a percentage of the basic loan and add this to the initial loan amount. This means you are also paying interest throughout the term of the loan on the amount charged for insurance. If you ever have cause for complaint about the PPI you have been sold for a secured loan, you should first complain directly to the firm who sold you the policy and give them chance to put things right. If you're still not happy with the outcome than you can escalate your complaint to the Finance Ombudsman Service. For advice about this it might be worthwhile paying a visit to their website prior to taking out the loan and insurance. Summary Like all insurance, PPI policies for secured loans generally include a number of exclusions or conditions that will prevent you from claiming on a policy. Whilst it is acceptable that the insurance provider protects themselves from fraudulent or deceitful claims, it is imperative you learn what you are and what you are not covered for. There is absolutely no point paying expensive insurance premiums for a worthless policy - and you would be amazed at how many people do! When taking out any monetary commitment, particularly if it is secured against your hose, it is always worthwhile seeking independent financial advice. Most registered I.F.A.s will normally give you a 30-minute consultation at no cost and there are also downloadable vouchers on the I.F.A.s various websites. Also, never be unwilling to ask the vendor about any details in the secured loan protection policy you're unsure about. If the salesperson cannot answer your query then don't hesitate to ask them to escalate the question to a Supervisor or Manager. As with anything in life, it is also worth asking someone with experience, so if you are taking out insurance for a secured loan, always ask around colleagues, friends and family to see if anyone has had experience of making a claim against one. But the bottom line is, always be careful where money is involved! By Adrian Hudson http://www.we-introduce-you.co.uk Adrian is the founder of We Introduce You which is a new company owned by Sprint Soft Ltd. Sprint Soft was founded in 1997 as an I.T. consultancy business. Adrian blogs about finance, secured loans and has been known to mention the odd thing about horse racing at http://www.we-introduce-you.co.uk/theintroducer/ |
Other Horse Racing Articles
Horse Riding Exercises – Circles and Bends Every horse riding exercise is based on the circle exercise. Circles help the horse to be able to bend equally in each direction, and this also helps the horse maintain straightness.Circles are a very important part of any dressage test - a dressage test at all levels will include combinations of circles of varying sizes, at different pa ...Elvis Left the Building and Moved in with Me! Years ago no matter where I lived, whether a house was new or not, I’d experience doors opening and closing by themselves, items disappearing only to be found later in the strangest places, seeing people others didn’t and being touched by unseen hands. Not only was this unnerving; it was also really frustrating! Each time I moved I’d think “He ...Pioneering Insanity “They’re crazy!” That’s what they’re saying about us. The majority of the people in America at this time in history do not channel spirits, do not converse with angels or aliens, do not astral project, do not know about any kind of higher vibration, and do not talk about Starseeds, Indigo Children, nor Lightworkers. They don’t know anything a ...Gaming in Kansas City, Missouri; Las Vegas style Texas Hold-em Poker and Slots Going to Kansas City? Kansas City calls itself the “City of Fountains” and with good reason. It has more fountains than any city except Rome, and talk about competing with European cities, KC ranks second only to Paris in the number of miles of its grand Boulevards.Located near the geographical center of the country, you’ll find KC to be ...Travel to Ireland Ireland is an island in the northwest of Europe with an area of 32,595 sq miles. About 370 km (230 miles) long by 225 km (140 miles) wide, Ireland comprises the Republic of Ireland and Northern Ireland. The population of the island of Ireland is approximately 5.8 million people, 4.1 million in the Republic of Ireland and 1.7 million in Northern ...Mazzilli Unfairly the Fall Guy for Angelos Well, hopefully Peter Angelos is happy now that he can rid himself of Manager Lee Mazzilli with a clear conscience, since the Orioles have been on such a horrible slide. It's no secret inside the organization that Angelos has been itching to fire Maz. But, facts are, Maz did a good job even having this team in contention for so long. This is an ...Use Reliable Speed Figure Handicapping Software This is what reliable speed figure horse racing software should do for You:Convert running times into realistic speed ratings;Give You the ability to detect the true speed of horses shipping in from out-of-town tracks; ...Good Ground Manners - The Essentials Of Horse Training Ground Manners - An OverviewHorse training success is all in the work from the ground. A good, long-term relationship between you and your horse is built from the ground up, literally. Ground manners is about teaching your horse how to behave around humans and that you are his protector and friend. The two go hand in hand by building l ...Race Equipment Checklist for Mountain Bike Racers I remember my first mountain bike race. Whenever I showed up, and was just about to change into my cycling outfit, I realized that I hadn't packed my clothes! Just kidding. But the reason I remembered them is that I had a checklist of everything I would need. I don't want you to forget anything, so I decided to put my list online.You ...Horse Racing Basics Horse racing is perhaps one of the most common and attractive wagering game. Every country that permits horse racing earns huge revenue through it. However, not every one is aware that a horse race has more to it than four legged animals and bets. For example, how many if us know about the evolution of horse racing, or where the first race was r ...Australia - Something For Every Traveler If you want to travel somewhere that's full of diverse sights and experiences, then Australia is the place for you. Whatever you're looking for, chances are that the 'Land Down Under' can provide it. It's possible to take multiple vacations in the one visit.For those who love big cities, then you can stay in Sydney or one of the other c ...A Preview of May's UK Horse Racing May ushers in the first Classics of the current turf Flat season, beginning with the 2,000 Guineas at Newmarket on May 6. All eyes will be upon the short-priced favourite George Washington as he bids to bring trainer Aidan O’Brien back-to-back victories in the colts’ Classic following Footstepsinthesands smart success twelve months ago.In ...Make Money Betting on Horses Are you in love with gambling on horse races? Do you believe that there is money to be made by betting on horses? Make money betting on horses today and begin treating yourself to better and more expensive belongings.Horse racing is a very popular gamblers sport and it seems that the gambling is all a chance, a guess, and some luck. Th ...Horse Racing Betting, A Beginners Guide (Part 2) In part one we went over how to pick contending horses by looking at the jockey, trainer and then finished off by looking at the form of the horse. By looking at the factors we went over last time you should now have been able to select some winners.In this article I’m going to give you a few more tips on how to select winners and give yo ...Fabroc - A New Intelligent Fabric that Keeps You Warm Protection from the elements is one of the fundamental necessities in life. Exposure to extreme temperatures can be deadly and every year there is an increasing number of outdoor enthusiasts who succumb to extreme weather. New technologies are addressing this problem by devising heated clothing. Fabroc is one of these new technologies -- a po ...Win by Losing - Laying bets on a Horse Racing System Betting exchanges are a recent introduction into the betting world that have taken the UK gambling community by storm. In the past, bets had to be placed with bookies, where the punter would back a team or entity and the bookie would lay the bet. In this system, the bookie would lay the bet backed by the punter and offer the odds. Betting ...All This and Heaven Too: Why I Believe We Are Blessed To Be a Blessing If I had been in prison last night, I would have been praying, "O God, please let me get out of prison. Please let me be free once more, to see the beauty of the earth, to walk freely among men, to do a good day’s honest labor!"But today I have my freedom; I am free to come and go as I please! For me, it’s like a prayer already ans ...Steve Hawking, Carl Sagan, Einstein, Neils Bohr, Newton; Enlightened? Recently in a Think Tank Forum Online, one, which can get a little way out there sometimes, a gentleman added to the excitement when he asked the group to entertain a very abstract around the concept of enlightenment. Indeed there is a lot of talk these days about the subject but this gentleman preceded to really rock reality when he stated: ...5's in Blackjack Counting cards in blackjack is a way to increase your chances of winning. If you're good at it, you can actually take the odds and put them in your favor. This works because card counters raise their bets when a deck rich in cards that are advantageous to the player comes around. As a general rule of thumb, a deck rich in 10's is better for the ...Betting Exchanges and Lay Betting - An Introduction Too many gamblers are still living in the ‘dark ages’ and will only ever place a bet with a traditional bookmaker. They either can’t be bothered to learn how the exchanges work or simply don’t realise the features and value that can be had when betting within an exchange environment.Believe me, using a betting exchange is very easy, and ...Great British Sporting Events In this article I write about some of the most famous British sporting events which take place on a yearly basis. My name is Steve Hill from Birmingham and I love to watch most sports especially football, tennis, snooker, horse racing and cricket.I am currently looking forward to the Fifa World Cup and the winter cricket Ashes tour to Aus ...Horses - Secretariat's Maiden Races In this article we're going to take a brief look at Secretariat's early races in his career that led up to a triple crown winner.Secretariat was a winner, but he didn't start out that way. His very first maiden race was on the 4th of July in 1972. There was a lot of fanfare surrounding this race. The big bad red racehorse was supposed ...Gambling History of United States Against the popular belief, gambling did not originate in the US. Most of the popular gambling games played in the American casinos have their origin in various foreign locales.Heritage of gambling is somehow related to the Chinese culture. Chinese culture has been the home of numerous gambling games. Keno, a popular Chinese game is one o ...Churchill Downs and Historic Horse Racing The history of Equestrian Sports in America goes back generations and there is no greater horse racing event then the Kentucky Derby at Churchill Downs in Louisville, KY. It is horse racing at its finest. The annual running of the Kentucky Derby has a long history of the greatest horse race in human history.The buildings still look like s ...Internet Sportsbook Every day more and more people are finding out how convenient it is to do their sports betting on the internet. The key is finding the right internet sportsbook. On an internet sportsbook you can place bets quickly and easily from the comfort of your own home. You simply open an account and start betting. A good internet betting site will make s ...
|
