Payment Protection Insurance aka PPI is designed to make your monthly loan repayments in case you are unable, due to accident sickness or redundancy. But customers who mis-sold their PPI could have debts are written off and the insurance refunded.
Borrowers could get their credit card debts written off due to being mis-sold credit card loans with Payment Protection which was unnecessary or not asked for?
It's important to note that the interest rate also known as the APR of a loan does not include the cost of payment protection.
A consumer should check the cost of the cover alone and work out if it is necessary and seek out more competitive quotes. Sometimes insurance can be purchased separately at a fraction of the cost.
If you are unhappy with the cost of the loan insurance or were not aware it had been added to your loan, you should be able to cancel the agreement.
Although some lenders will allow the loan to continue with the PPI removed, others may charge an admin fee.It can leave you covered in times of distress if you have the right cover, or you can be high and dry with no place to go if you don't.
A comprehensive retirement plan factors in the following:
• Your current age
• When you should retire
• Your current household expenditure
• Lifestyle desired in retirement
• Yearly rise in cost or inflation
• The retirement corpus you will need
• The retirement income you will need
• The type of investments you need to make
• Your goals e.g. children's needs for higher education and marriage
• The tax implications of the investments
• Your housing needs
• Your life insurance and health insurance needs
It is never too late or too early to create a plan to start saving and investing to generate an income that allows you to enjoy a lifestyle. You are accustomed to even when there is no salary at the end of the month. In fact, to leverage the power of compounding, you must start saving and investing in a retirement plan as early as possible.
A professional retirement planner can help you define your dreams, develop a plan to help you realize those dreams, build for contingencies and monitor your progress along the way.