What's the meaning of face amount

Face amount refers to what the words or numbers on the printed page of a financial instrument literally say. Often used in the context of life insurance, the face amount refers to the stated amount of money payable to the deceased's beneficiaries at the time of loss or when the policy matures.

What is face amount example?

The face amount, or face value, of a life insurance policy, is the amount of money an insurer will pay out to beneficiaries if the policyholder passes away. For example, if you buy a $100,000 life insurance policy, the face amount of that policy is $100,000.

Why is it called face amount?

The term face value originates from the amount printed on the face of a postage stamp or stock certificate. It is more commonly known as the significance or original price of a product or service.

What does at face value mean?

to accept something as it appears to be rather than studying it more closely: I took the offer at face value. I didn't think they might be trying to trick me. Accepting ɪmp; agreeing.

What is face amount note payable?

Face value is the amount of a debt obligation that is stated as payable in a debt document. The face value does not include any of the interest or dividend payments that may later be paid over the term of the debt instrument.