Common
policy limits
Not everyone is eligible to claim on a Payment
Protection Insurance product in the first place. The following
rules normally apply:
- For a mortgage PPI product, you must
have a mortgage!
- You must be of a normal working age
- between 18 and 65 years old.
- You must have been in employment
for at least six months prior to taking out the policy
and have an average
working week of at least 16 hours.
Not all self-employed, sole traders
or contract workers are able to get PPI for credit cards
or loans
Assuming you are eligible for PPI, there are
a number of common reasons why you may not get a payout if
you make
a claim, though some policies may not
exclude
all these situations:
- You knew you were going to lose your job
or be made redundant when you took out the policy.
- Your
work is seasonal.
- You left work voluntarily.
- You were sacked
for misconduct.
- You have received pay in lieu of the period
of unemployment.
- You have already had treatment or even
simply knew about the medical condition, disease or illness
that has caused
your inability to work.
- You claim for an illness,
disease or medical condition that is not covered by the
policy.
Many things such
as pregnancy or backache are
excluded -
these should all be detailed in the policy document.
- You
didn't have the policy you thought you had. Don't confuse
mortgage PPI with a mortgage insurance guarantee
(MIG). This
is an insurance that
you pay
when you are borrowing more than 90% of the property
value. The purpose of this insurance is to protect
the lender
and not you.
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