It’s always important to offer Payment Protection Insurance to every eligible borrower. Your customers have the right to know that they may protect their debt(s). As the lender, you have an obligation to provide them with the necessary information that will allow them to make a sound decision. Payment Protection has many features; however, explaining all PPI features may be overwhelming for your customer. Logic says that every customer is different. When presenting Payment Protection, consider discussing only the features that may benefit them. Here’s a review of some of the features of Payment Protection Insurance:
• Not age rated. Everyone pays the same rate and may be eligible as long as they fall within the group age guidelines. Other insurance options may be based on age; therefore, the premiums may be higher and increase with age.
• No physical exam. Taking the time to have a physical exam and/or having some medical conditions may disqualify an individual from getting protection on the open-market or paying a higher premium for coverage.
• Payment Protection is paid directly to the lending institution (once the customer has filed a claim). This means they don’t have to pay out of pocket and wait for reimbursement.
• Not occupationally restricted. This means that any working individual may qualify for protection. Think of occupations that might be a higher risk in your market. How might Payment Protection be valuable to them?
• No tobacco restrictions. If your customer is a tobacco user, they pay a higher premium for other insurance protection; however, Payment Protection rates do not increase with tobacco use.
• May be cancelled at any time. If your customer pays off the loan early, coverage will cease. If they wish to cancel coverage, for any reason, they may do so without being penalized. Payment Protection has many great features that will offer valuable benefits to your customers. Just remember to ask open-end questions to ensure you’re offering the right features that provide them with the greatest benefits.
PPI-For Internal Training Use Only
