Getting the most from PPI after an accident or illness

Payment protection insurance (PPI) is designed to pay out should the policyholder be made redundant or unable to work due to accident or sickness. Yet, in the current economic climate - with the fear of unemployment rising by the week - it's the redundancy aspect of PPI that many policyholders and media reports surrounding the financial product seem to concentrate on.

However, a recent survey revealed that 40 per cent of PPI claims made in the last 12 months in the UK have been due to accident and sickness, rather than unemployment. So even if you're in a secure job and feel that PPI might not be applicable to you, it might be time to think again. For instance, if you were to have an accident that left you unable to work for some time, how would you pay essential outgoings, like your mortgage, credit card payments and food bill? It's in situations like this that PPI is invaluable.

How can PPI help if I am sick or injured in an accident?

If you hold a payment protection insurance plan and you're unable to work due to accident or long-term sickness, your policy should pay out a month after you've had to leave work. This money should enable you to meet your essential expenditure and make up for your lack of working income. In many cases, however, PPI providers will only pay out for 12 months so if you're afraid this time period is too small, it may be worth speaking to your insurer or seeking out a more comprehensive health insurance policy.

When you're filling in an application for PPI, it's crucial that you disclose all your details as honestly as possible to the best of your knowledge. Many PPI providers will not pay out for pre-existing conditions, so if you suffer from a recurring back injury that you were aware of when your purchased your PPI but you do not tell your insurer, it's possible they will refuse your claim due to non-disclosure if you are later forced to stay at home because of it. In addition, if the company you work for has a lengthy statutory sick pay allowance, your PPI may not be valid until this payment ceases.

What's more, if you're already a PPI holder and you're worried about contracting swine flu, it's worth calling your insurer to check that your policy covers you should you have to stay at home from work to recuperate. While the current recovery period for swine flu sufferers is said to be just a week, many experts are warning that the virus may mutate in the coming months and the effects of this new strain could be much more significant.

Comparing payment protection insurance online

Insurance comparison sites like this one make it simpler for you to compare the benefits of payment protection insurance policies from across the market. As well as ascertaining the different levels of cover offered by different providers, it's also easy to compare PPI quotes online. And with the help of policy star ratings from companies like Defaqto, it's easier than ever to find the right balance of a PPI policy that meets your needs and stays within your budget - so you'll enjoy valuable peace of mind that if you should unexpectedly suffer an accident or illness, your outgoings will be covered.