Why people dont buy payment protection ASU

Why people don't buy PPI

There are many reasons why people don't buy or even think of buying Payment Protection Insurance. It's worth reading through the comments below as they might just apply to you. After all, who would ever have thought that doctors and nurses would ever become unemployed!

"It's very unlikely I would ever need to claim"

Hopefully, of course, this may turn out to be true. But in reality it could be far more likely than you think. Surely you owe it to yourself and your family to take a realistic view.

"My job is secure and I get paid if I'm off sick so I don't need Payment Protection"

If you know your employer will carry on paying you when you're unwell, that's great. But before you dismiss Payment Protection, ask yourself this:

  • Will you receive full or only part pay?
  • Would you miss bonuses, overtime or shift allowances?
  • What if a merger or a take-over does away with your role?

"I have enough savings to see me through a rough patch"

You may feel you don't need PPI if you have substantial savings earmarked to cover your repayments if you become unable to work. But could there be other calls on those savings? A family holiday, an extension to your home, or perhaps a wedding? If so, PPI is still well worth considering.

"I'm self-employed so I probably couldn't claim anyway"

It is unlikely that you can claim for unemployment unless your business ceases trading due to insolvency. Remember, though: you are just as likely as anyone else to have an accident or fall sick. So it's certainly worth considering Accident & Sickness only cover.

"I'll claim benefits and that will take care of the mortgage and loans"

You MAY qualify for some form of mortgage assistance (though 7 out of 10 claimants do not), but you will CERTAINLY have to wait nearly nine months before receiving a penny. How would you manage in the meantime?

Even if you do qualify for mortgage assistance you will only get help with interest payments. Any repayment element will not be covered. And you will get NO help at all with any other kind of borrowing.

"I have a medical condition already, so I can never claim for it"

Most PPI policies specifically exclude pre-existing medical conditions (i.e. anything you knew about, or sought treatment or advice for, in the 12 months before cover starts). But just because you have a known condition doesn't mean you won't have an accident, develop an unrelated condition or become unemployed. So, again, it's well worth thinking about PPI. ASU direct does cover pre-existing medical conditions, provided you have gone 24 months without seeking medical treatment or advice for them.

ASU