Credit card payment protection insuranceCredit card payment protection insurance is also known as loan payment protection or simply payment protection insurance. This insurance is meant to provide coverage on the debt repayment incase of the death, illness or unemployment of the borrower. Generally when applying for a loan or credit card, the applicant will be given an option of buying Payment Protection Insurance (PPI).
Sometimes it will be included in the loan itself which the borrower will not be aware of. He will also be paying increased monthly repayments because of this insurance. But every applicant should be aware of it. PPI is only optional and credit card providers or loan providers cannot include it without the consent of the applicant.
There are several kinds in payment protection insurance. They are credit disability insurance, credit unemployment insurance, credit property insurance and credit life insurance. The applicant should opt for any of these insurances only after considering the pros and cons of each of them.
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