| Thousands of people lose their homes due to | | | | In case of secured loans, your property is at stake. If |
| repossession. To a certain extent, payment protection | | | | you fail to repay the loan, the lender may repossess it. |
| insurance helps you in avoiding such situations. Some | | | | PPI takes over your repayment liability on the |
| situations are covered under this type of insurance. | | | | happening of any of the events covered under the |
| Whenever you face these situations, the PPI policy | | | | policy. |
| ensures that you do not default in your repayments. | | | | So, you can get protection in such cases. Your home |
| The grounds covered under this insurance policy are | | | | will remain safe with you even if you become jobless, ill |
| loss of job, disability to work, illness, accident, death, etc. | | | | or permanently disable to work. No doubt, PPI helps |
| Different policies may have different terms and | | | | you in reducing the risk especially in case of secured |
| conditions. | | | | loans. |
| The cost of taking a PPI policy is called premium. You | | | | Now, the question that arises is whether the premium |
| are required to pay certain amount of money annually. | | | | that you pay to the insurer is worth the risk. Opinions |
| The annual premium varies depending on the amount | | | | may differ. It is entirely up to you to take a decision. If |
| of loan that you want to avail. Sometimes, it is worth | | | | you feel that in any case you would be able to repay |
| paying the premium. If you are taking a loan against | | | | your loan, there is no need for PPI. But, if you are |
| property, PPI policy becomes desirable. If something | | | | doubtful, the decision lies with you. Some borrowers |
| wrong takes place, PPI policy may come into picture | | | | prefer to take PPI in case of secured loans but avoid |
| and save you from committing a default in repayment | | | | such policies when taking out loans where there is no |
| of loan. | | | | danger to their properties. |