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Well.........!

It's common, Many people have more equity in there home than they owe on it.

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โˆ™ 2014-11-08 08:29:40
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Q: What if the amount of insurance is greater than the payoff value of your home?
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What if hail damage is greater than the value of car?

than your car is totaled and your insurance company just pays you a dollar amount instead of paying for the repairs... assuming you have insurance


If your car is worth 12K but you owe 20K on it will the insurance company pay it off if it is totaled in an accident?

You can only collect the fair market value or retail book value depending on the regulations as established by your state's insurance commissioner. The only way you can collect the difference between the Actual Cash Value of your vehicle and the Payoff is through GAP insurance. This is usually offered to you during the purchase of your vehicle but can be purchased later. At the time of purchase, the offer to purchase GAP insurance may seem like a ploy by the salesman to sell you something you don't need. However GAP insurance is a valuable option should this situation arise. GAP insurance is what its name implies, insurance coverage for the "GAP" between the fair market value of your vehicle and the payoff amount.


What limits the amount that a policy owner can borrow from the insurance poicy?

the limit of a loan against the policy is the amount of net cash value you have on the life insurance policy. Up to 75% of the paid up value of the life insurance policy, irrespective of the sum insured amount.


Is mortgage insurance optional?

no. If you have a loan greater than 80% of the value of the home and the lender requires mortgage insurance, then it is not optional.


If you cash out a permanent life insurance policy what amount do you get net cash value or total coverage amount?

kasafugenkingshun


What is the difference between face amount and cash value?

The face value is what your beneficiaries will collect. The cash value is the excess of your premium payments over the cost of the insurance. Click here for more about life insurance cash value.


When a life insurance policy is cancelled and the insured selects term nonforfeiture the cash value of the policy will be used to purchase term insurance what happens to the face amount?

face amount reduces and the policy is made for paid-up value


Does insurance pay house off after house destroyed by fire?

It does if the policy is current and there is adequate coverage. If the property is underinsured the insurance company will not pay for the entire loss. That all relates to the homeowner's insurance.If the mortgage is greater than the value of the property then you will owe the balance after the homeowner's insurance payment unless you have mortgage insurance.It does if the policy is current and there is adequate coverage. If the property is underinsured the insurance company will not pay for the entire loss. That all relates to the homeowner's insurance.If the mortgage is greater than the value of the property then you will owe the balance after the homeowner's insurance payment unless you have mortgage insurance.It does if the policy is current and there is adequate coverage. If the property is underinsured the insurance company will not pay for the entire loss. That all relates to the homeowner's insurance.If the mortgage is greater than the value of the property then you will owe the balance after the homeowner's insurance payment unless you have mortgage insurance.It does if the policy is current and there is adequate coverage. If the property is underinsured the insurance company will not pay for the entire loss. That all relates to the homeowner's insurance.If the mortgage is greater than the value of the property then you will owe the balance after the homeowner's insurance payment unless you have mortgage insurance.


What is the most important value of health insurance?

It reduces the amount you pay for medical expenses.


Benefit of choosing Extended Term Insurance as a nonforfeiture option?

It has the highest amount of Insurance Protection; Under this option the insurer uses the policy cash value to convert to term insurance for the same face amount as the former permanent policy. The duration of the new term coverage lasts for as long a period as the amount of cash value will purchase.


Can you buy the amount of homeowner insurance you want?

Insured Property ValuationIn the united States there are two valuations that can be used to purchase your homeowners insurance coverage. ACV (Actual Cash Value) or RC (Replacement Value). If you are wanting to insure just the amount you we on a finance or mortgage note, That would be called mortgage insurance, not homeowners insurance..


Is there cash value in decreasing term insurance?

Decreasing term life insurance does not usually have any cash value. Decreasing term life insurance is life insurance coverage in which the face amount of a term life insurance policy declines by a certain specified amount over a specific number of years. For example, the initial face amount of coverage of a $200,000 decreasing term life insurance policy decreases by $20,000 each year, until after 10 years the face value of the policy equals zero. The premium does not decrease over the term of the policy.


When car repossessed can you pay the cars value?

Yes. And the payoff, will usually be less than the amount owed on the loan. Work with the bank. They do not want the car, only their money.


If the insurance does not pay the amount due on the vehicle what happens to the loan?

i am assuming the following: your vehicle totaled, you do not have GAP insurance and the value of your vehicle was less than your payoff...unfortunately you will still owe this balance, most lien holders will do what they call a 'transfer of collateral'' meaning they will finance (assuming you are in good standing) if you want. your replacement vehicle and put this balance on top of that note....immediately making you really upside down AGAIN ...pleeeeeeeeeeeeeease get gap insurance on this one, talk to your lien holder about it...gap insurance pays the 'gap' between the value of the vehicle and the note balance..


How does the the damage that a hurricane does determine the amount of monetary damage?

Usually the amount of damage is estimated based on insurance claims. Uninsured property is then estimated based on the total value of the insurance claims.


Cash Value of whole life insurance?

Cash value of whole life insurance is referred to as the "Cash Surrender Value". The cash surrender value is money the policyholder is supposed to receive from the insurance company when surrendering the whole life insurance policy with cash value. The cash surrender value amount due is the sum of the cash value stated in the whole life insurance policy minus any surrender charge and any outstanding loans and interest due on the loans.


What effect does cash value have on life insurance benefit amount?

Type your answer here... life cover


Can you count the face amount of an insurance policy as part of your net worth?

No. But you can count it's redeemable value as part of your net worth. Be aware that not all life insurance policies have redeemable value. Contact your insurance agent for more details.


Does the face amount of endowment insurance double if you are alive at the end of the period?

No. At the end of an endowment policy, the cash value equals the face amount.


Is it legal for the bank to require you to purchase home owners insurance for 3 times the value of the loan?

Your homeowners insurance in the United States must by law cover the value of the home being insured with no more than a 20% deviation. This may be more or less than the amount of your loan. No insurer will knowingly sell you a home insurance policy below the home value as such an insurance contract would be invalid. Homeowners insurance is for the home, not for the loan. You can purchase your homeowners insurance based on actual cash value of the home or on the replacement cost of the home. If you only want to insure a mortgage loan amount, that's what mortgage insurance is for.


If your face amount is 150000 what is your cash value?

You can't tell from Face amount. Check the policy for the cash value schedule. The Insurance Company should send you an annual statement. Call the company.


What is the cheapest home insurance rate currently?

"Currently, Nationwide has the best value for the amount of coverage you require and the size of your home. Also, combining your auto insurance


When the cash value of a universal life insurance policy grows close to the amount of death benefit an additional corridor of insurance is added to the benefit under what?

Endowment


How much insurance do I need for contents of my home?

The amount of insurance you need depends on the value of the contents you own. If you have a lot of valuable items, like collectibles or antiques, then you should invest in more insurance.


Can you collect from a Gerber life insurance policy after you turn 21?

Yes, you can turn in the policy and receive the cash value. However, the amount of money you receive will depend upon your age, how long you have had your insurance and the policy's benefit amount.