All policies are different, so always shop around and double check with the provider selling the product whether it includes the features you need it to.
- PPI is almost always optional – you should not normally be refused a loan if you decide not to buy it. If in doubt, ask your provider whether it is optional.
- PPI only pays out for a set period of time, usually 12 months.
- Bear in mind that many policies will not pay out for the first couple of months after you have made a claim and some may not backdate any payments. This may mean you need to consider how to cover these repayments before the policy starts paying them.
- To claim on the unemployment part of the policy typically you must have been employed continuously by the same company for the last 12 months on a permanent contract.
- Check carefully if you are self employed and require cover – the policy may not cover you.
- Before you take out cover, the firm should give you a Policy Summary. This should set out the key features and benefits, as well as any significant or unusual exclusions or limitations. If you have any queries about these, you should ask the salesperson to explain the cover in more detail. This will help you make an informed decision on whether to take out cover. For example one of the significant limitations in some policies is the ability of firms to increase the amount of premium payable and reduce the amount of cover by giving you notice.
- You may not be able to make a claim for an illness you already have or have had before. Make sure you check this before you take out the policy. This will be called a pre-existing medical condition and can include any medical conditions you have, even if they haven’t troubled you for a while.
- Stress or back complaints, and possibly other conditions, may not be covered, even if you can’t work because of them. Again, it’s worth checking before you take out the policy.
- You have a legal right to cancel the policy and get a full refund within 30 days of taking it out.
