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Payment protection is something that you must get if you are a credit card holder. You may have been offered payment protection at some point in time or you may have taken out one yourself. There are people who have benefited from this and then there are those who most likely have a\wasted their money on it. If you are one who is in a quandary about whether you should or should not take out payment protection then here are some handy tips that may help you decide.
Let’s start with defining payment protection insurance or PPI. This is basically an insurance cover on the credit card or loans that will help you repay them in case you are unable to. The reasons behind your not meeting the repayment schedule could be unemployment, injury or sickness and these are covered under the PPI. Under these circumstances your payments can be done for up to a year and it is possible that your outstanding balance may be repaid in full by then. This sounds like a sound idea but keep in mind that PPI is expensive. The norm is to charge a percentage of the balance due and if your balance is low the cost will not make any untoward impact. The problem arises when your debt is high and it can go unnoticed among all your other transactions.

It has been seen that PPI does help in some cases overall the cover level offered is not very good and the criteria to be met to claim this cover has to be adhered to in its strictest form, which often eliminates a lot of potential claimants. For the self employed this is an option best not taken as you will not be able to claim unemployment benefits like others.
So then who would exactly qualify? Well there is some category of people who should take out PPI and these would be those who are of poor health, those who take part in high risk activities and those who are regular in some sport or the other. Remember PPI covers if there is an injury or illness that prevents you from working so if you are in any one of the above mentioned category then you could consider PPI.
What are your alternatives incase you are considering PPI? There is insurance available that will be cheaper than what your card issuer provides you and you should do your research well before you decide what you need. A cheaper option would be to consider a standalone PPI offered by an independent company. Here, not only are the policies a fixed amount which are independent of your balance amount, they are a lot cheaper than the regular policies offered by PPI. Another option is to check out whether any other insurance owned by you covers you for terms of PPI. A little bit of homework should get you an economically beneficial PPI deal which gives you the cover you want.