What Does Face Amount Mean On Life Insurance?

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3 responses to “What Does Face Amount Mean On Life Insurance?”

1. 

   April 23, 2014

   Tom Sheehan

   The “face amount” of a life insurance policy is the original  specified death benefit that you purchased at the time you applied for the coverage.  This is the amount that will be paid to your beneficiary at the time of your death.  If you have some form of permanent Life Insurance (Whole Life, Universal Life, Variable Universal or the like) and have borrowed from the accumulated cash value of the policy, then any outstanding loan balance  would be subtracted from the face amount and the balance then paid to your beneficiary.
2. 

   July 20, 2013

   Peggy Mace

   The face amount means the amount of money that will be paid to the beneficiary when the insured person passes away, or when the policy matures. In term life insurance, the face amount is the amount of life insurance that was purchased.
3. 

   July 14, 2013

   David Racich

   The face amount of a life insurance policy is the death benefit the beneficiaries will receive upon the demise of the policy insured. The death benefit can also increase depending on the type of permanent life insurance policy you purchase.