There are few needs more basic than wanting to provide a home for your family. And few things that make a person feel more out of control and helpless than not being able to keep that home. But in these times of economic uncertainty, that very thing has happened and continues to happen to countless people. Is there anything you can do to safeguard your credit and your family’s home? Yes, if you do your research and use care.
Payment protection insurance (PPI) is often sold alongside mortgages as well as auto and other personal loans and some credit cards. For our purposes, we’ll be discussing mortgage specific PPI. The intent of PPI is to protect you and your home in the event that unforeseen circumstances such as illness, accident or loss of job result in an interruption of income. Without money coming in, it wouldn’t take long before most consumers would find themselves unable to meet their monthly mortgage payment obligations. That is where PPI can help. If you have a policy, you simply make a claim against it and your monthly mortgage payments are taken care of until you are able to resume responsibility.
Sounds great, right? And it can be. But remember we talked about doing your research and making careful decisions.