Self-Employed PPI

You May Not Need A PPI Policy If You are Working In The Public Sector Or Self-Employed

People who are currently working in the public sector or people who are currently self-employed may not need to take out a payment protection insurance policy with banks and money lenders as they have benefits within their jobs which would provide them with similar cover.

The various positions within the public sector consist of Fire fighters, Teachers, Council Workers etc and all of the people who work within this sector may already have cover to help them with loan repayments so it would be un-necessary for the workers to take out a PPI policy. If a worker cannot work due to suffering an injury or become sick then they may be eligible to receive incapacity benefits. Incapacity benefits are weekly payments for people who are under the state pension age. The incapacity benefit is a policy which comes with working in the public sector. The incapacity benefit is a similar policy to that of the payment protection insurance (PPI). However, it a lot less expensive than the PPI policy as it come with the job which means that there won’t be any need for a worker to take out a PPI policy when applying for a loan.

If you are currently self-employed in your own business you may have been mis-sold payment protection insurance by a bank or money lender which may be un-beneficial to yourself. This is because being self-employed comes with various benefits and insurance which you need that will adequately cover you other than a payment protection insurance policy which could also prove to be a lot more expensive. One of the insurances policies that come with being self-employed is that depending on the nature of your business you are required by law to occupy specific types of insurance for your business. One of the main types of insurance is;

• Employer’s liability insurance. If your business employs other workers you must have this insurance. It regulates vital cover for claims made by those employee’s who as a result of their employment become injured or become ill.

• Health and Accident insurance. This insurance will either pay out a regular income or a lump sum if the worker is unable to continue work because of suffering from an accident or because of sickness.

Both of these insurance policies which are a requirement are very similar to the benefits of what the PPI policy is offering to people. So therefore, you would not need PPI cover within your loan because it could be covered by employer’s liability insurance and health and accident insurance.