Amount Payable is...

macy9

Ok, apologies if this is a really dim witted question (i promise its not a legal advice question, just a question about terminology) but basically person A and B had a mortgage and a insurance policy covering the mortgage in the event of a shortfall. Person A died and person B got a letter from the bank saying that:

''the amount payable, subject to the admission of the claim, is 40,000.''

Does this mean that person B owes that or that they will be getting that from the bank?

See, dimwitted I know. Is it payable to person B or does person B have to pay it?

Maximilian

I'm not sure you've explained it terribly well but if I am reading it right, then it seems there is 40,000 due (to out of the policy. Unless the 40k is the amount now owing under the mortgage or something - in that case the terms of the policy would determine whether that can be claimed back (I imagine they would).

Generally, the only thing you would ever be paying to an insurance company is a premium.

macy9

Thanks for the reply.

There's only €6,000 left to pay on the mortgage so this new figure of €40,000 is news to me.

Maximilian

Well typically what a mortgage protection policy provides for is that on the death of one of the insured, the mortgage is paid off. It's entirely possible that such a policy also provides for an additional lump sum as well and perhaps that is what's happening here. As the policy would have been assigned to the Bank, all payments under the policy would go to them. That's possibly why you are hearing from the Bank about it, rather than the insurance company.

To be honest it seems strange to me that upon receiving a letter or whatever notifying you of all this, that you would look for an answer here rather than just ring the Bank and ask them what it means.