Whilst there has been much media attention surrounding missold Payment Protection Insurance (PPI), repossession figures having revealed just how important the protection product can be. The Building Societies Association (BSA) showed that only 16 percent of those experiencing repossession had insurance, resulting in the overall majority being very vulnerable to home loss.
Mortgage PPI can be vital for some, and in the event that they lose their jobs and cannot make loan repayments, insurance can provide the vital funds necessary to keep a roof over their head. However, the misselling scandal has put a negative tint on the industry, making many consumers wary of the protection products.
In the 1990s, mortgage PPI was actively promoted as Britain saw an increasing number of individuals taking to the property ladder. As state benefits continue to reduce, PPI has become more important to consumers to protect their homes from repossession. However, the take-up of the insurance product has not been as high as the BSA would like, with their report calling for the government and industry to take action and ensure that homeowners have legitimate insurance to offer support should they need it.
British Insurance has revealed that Payment Protection Insurance (PPI) has an important place in society and needs to be rehabilitated so that consumers feel safe to use policies. Although PPI has been missold to millions of consumers, the right PPI product remains the best way for families and individuals to protect their assets in situations of loss of employment or illness.
Individuals who lose their employment or become ill and can no longer work are reliant upon a PPI claim. In such cases, they can make significant monetary claims; funds that can help pay mortgage or credit card repayments and ensure that individuals can stay financially afloat through difficult times.
With the Office for National Statistics revealing that unemployment had grown to a July high of 2.51 million, more people than ever could be at risk of losing their jobs. However, 86 per cent of British workers are without PPI, leaving them very vulnerable should their income be slashed or lost.
British Insurance's Nel Mooy revealed that PPI is still confusing for many people, with the recent misselling scandal affecting many residents' view of such products. Miss Mooy said, "Plain-speaking information, explaining what PPI is, how it works, who it's suitable for and what it costs, is hard to come by." With the group developing an easy to understand guide in association with MoneyNet, it is hoped that consumers will be become more open to the insurance product, and protect against possible financially difficult futures.
The BSA is asking brokers to make sure that the consumer makes an informed choice when it comes to selecting a mortgage PPI policy which will cover their mortgage repayments in times of need and they are not purchasing a worthless product. The protection of homes should be a priority whilst the PPI misselling scandal continues.
Colin Hartness is the Managing Director of Fast Track Reclaim specialising in No Win No Fee Payment Protection Insurance Refunds with No Upfront Fees ensuring clients receive the absolute maximum mis sold PPI settlements.
Article Source: http://EzineArticles.com/?expert=Colin_R_Hartness
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