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What is PPI (payment protection insurance) and credit card balance protection insureace

What is PPI (payment protection insurance) 

and CCBP 

(credit card balance protection insurance)


What is payment protection insurance:

PPI or payment protection insurance is a financial product sold by banks building societies and other financial service providers. 


products that may have included PPI are things like credit cards loans store cards overdrafts and some mortgages. 


PPI is an insurance policy designed to cover your loan repayments should you become ill or made redundant have an accident or otherwise unable to work. 


some customers may not have understood that they were buying PPI when it was sold alongside a loan or credit product.  


In some cases the PPI may have been added to the product without the customers knowledge between 52 and 64 million policies have been sold mostly between 1990 and 2010 


Not all PPI was Miss sold but many policies were miss selling might have happened where for example a financial provider sold the policy to someone who wouldn't be eligible to make an insurance claim on it. 


Perhaps because they were self-employed or due to high pressured sales tactics there may be other ways that your policy was mis-sold to you these are listed on our website this has resulted in billions of pounds being paid back to people who complained about the sale of PPI. 


There is now a new reason why you might want to complain about PPI high levels of commission sometimes called Pleven where you'll provider earned a high level of commission from your PPI but didn't tell you this when you bought it. 

There is now a deadline for making a PPI complaint you have to complain about PPI by the 29th of August 2019 otherwise, your complaint will not be considered


What is Credit card Balance Protection Insurance:

what is credit card balance protection insurance and how much does it really cost there are many ways to lose your income job loss getting sick or injured to the point  


where you can't work and death with a drop in income your ability to pay your bills can become compromised the financial institution that offers your credit a card will have 


undoubtedly tried to sell you credit card balance protection insurance as a means to manage your credit card obligations 


if that happens here's how it works it's an insurance plan so you have premiums claims and benefits the premium is just a fancy way of saying cost you would make a claim when a covered 


the condition occurs and the benefit is what you get if your claim is accepted in the case of credit card balance protection insurance the common claims are for a loss of job disability critical illness or death the benefits vary from policy to policy 


but often amount to covering your minimum monthly payments if you're temporary without income and can also pay a larger lump sum against your balance in more extreme cases such as critical illness or death  


here's the basic example you carry a $500 average monthly balance on your credit cards you signed up for credit card balance protection and the cost was stated as 94 cents per $100 of the balance owing that means the monthly premium you pay which gets added to your credit card bill. 


monthly is $500 times 94 cents per hundred dollars that equal 4 dollars and 70 cents plus tax for that month now if you make a claim say you lost your job the balance protection  


insurance might kick in and pay the minimum payment for you for a certain period of time but let's dig a little deeper some people might mistakenly believe that there is no premium owed 


if you always pay off your credit card bill every month but that's not normally the case the premium can actually be charged against the average daily balance for the billing period, 


for example, let's say your billing period is January 1st to January 28th On January 5th you make a purchase of $1,000 you pay it off in full On January 25th when you get your credit card statement 


it will show that you have a zero balance owing but your average daily balance for the period was 714 dollars and 29 cents I know what you're thinking where did that number come from well you carried a $1000 balance for 20 days 


and you carried a zero balance for eight days so the average daily balance over 28 days works out to 714 dollars and 29 cents so even though you might pay off your balance in full by the due date, you might still be charged 


an insurance premium of 94 cents per $100 of the average daily balance in this case the insurance premium would be 714 dollars and 29 cents x 94 cents per $100 that equals six dollars and 71 cents plus tax generally speaking if you have separate and adequate  


life insurance coverage disability insurance coverage and an emergency fund set up most experts agree that balance protection insurance is not necessary every the policy is different the premium rate the formula used to calculate the premium the covered conditions and the amounts of the benefits will be outlined in your specific agreement it's wise to read up on them and understand what you're getting and what you're paying


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