Unemployment, ill health or anything which could impact on your earnings is likely to alter your circumstances and subsequently your ability to make repayments on a PPI product. 
From this point of view, payment protection insurance serves a valuable purpose in terms of acting as a back up plan.
However, it is equally important to consider whether such an outgoing is really necessary for your individual circumstances. After all, we are all looking to cut down on unnecessary outgoings.
If your employment circumstances are stable and your health is in a good state when you’re applying for a loan, there is a strong case to be made for ignoring something like a PPI policy.
Some people though, due to a variety of reasons, did not forgo this type of insurance despite not actually needing it.
This is probably due to a number things including high-pressure selling techniques and consumers not getting all the information regarding such policies and how they work.
An increasing amount of reports have emerged over the past decade which indicate that when banks presented the idea of a PPI policy, they did not make all the facts clear surrounding exactly how it works.
The basic facts surrounding payment protection insurance are simple. Whatever you are applying for, if you have reason to be worried about your immediate future, then PPI can be a good idea.
However, if your employment is secure and your health stable, it is almost certainly an expense that you could do without.
Consider these key aspects of your life before committing to a financial product that could turn out to ultimately present you with more problems than solutions.
If you believe you may have been mis-sold PPI, it could be worth contacting a claims specialist to see if you are entitled to compensation of any kind.
