Everything You Must Know about Payment Protection

Keeping your information secure is a top priority for anyone doing business online, mainly due to the high number of hackers and scammers out there. Every day we hear news about someone who got their money stolen, and as much as it is a terrible situation, it is something that's going to keep happening.

However, it doesn't have to happen to you. That's why in this article, we are going to be learning about two efficient ways of protecting your finances and making sure you stay away from any danger.

Payment Protection Insurance

This is an optional service given to you by many credit card companies, which temporarily stops your monthly payments if you see yourself in a situation that makes it impossible for you to do it. Some of these situations are sudden sickness, disability, or involuntary unemployment. It also may cancel the payments if the user suddenly dies.

However, some banks may offer different coverages, usually divided into two categories.

● Short-term payment protection. These plans tend to cover meaningful life events, such as marriage, moving houses, or welcoming a new child.

● Long-term payment protection. They last between 18 and 24 months and cover situations that directly affect the ability of the customer to pay their loans. Situations like illness and the ones we mentioned earlier are suitable examples.

Payment protection insurances usually don't cover eventualities that derive from criminal activity or leaving your job to pursue higher education. There could be exceptions for the latter, but it depends on your specific situation.

Payment Protection Insurances Conditions

Logically, you must meet certain conditions to qualify for payment protection insurance. Some of them are:

● You must be under a doctor's care

● The accident should make you unable to perform any job that you're qualified to do

● You must have had been working for months before obtaining the insurance

● The disability must last more than 30 days

● Your insurance is going to last a pre-determined time lapse

Security USB Token

Security tokens are physical devices that act like passwords and provide access to an electronic resource. They are used to prove your identity and protect your information from hackers and unwanted people.

These devices strengthen your security and are often used by banks and other informatic agencies to protect their private data. Some carry a password; others are built with biometric data such as fingerprints.

Types of Security Tokens

● Disconnected tokens are small devices built with a screen that displays the authentication data that must be manually typed to unlock the desired information.

● Connected tokens are meant to automatically transfer the necessary information to unlock the data once they're plugged into the device. An excellent example of these tokens is smart cards.

● Contactless tokens are a wireless version of connected tokens, as they can log into your desired device and unlock them without needing to be physically connected. However, the battery life is relatively short.

Security Tokens Vulnerabilities

Security tokens also have some downsides that you should consider when getting one. The principal vulnerability is theft or loss of the device, but this can be fixed by always using two-step verification for accessing your information.

Other vulnerabilities are the attack from hackers and the possible breach of codes.

Bottom Line

Protecting your financial security should be your priority, as you never know when eventualities might occur. These are only two very useful ways of achieving that.

However, we encourage you to keep an eye on new technologies and research more ways to ensure your safety in these digital times. Hopefully, you found this article helpful; keep coming back for more!

This article does not necessarily reflect the opinions of the editors or the management of EconoTimes