What is face amount in life insurance?
Face Amount: " The amount of insurance that an individual buys. The Face Amount will be paid in the event of the policyholder’s death or when the policy reaches maturity. It does not include any extra benefits that might be payable under accidental death or other special provisions.
What happens when a life insurance policy is paid out?
When the policy ends at the time of death or the maturation of the contract (which may be 100, 101, 120, or now 121) the policy is paid out and the face value goes to zero. Policy is cancelled by the Insurer for Non Payment, Other: The reverse can happen where the insured does not choose to end coverage but rather the insurance company does so.
What is the face amount of Joe's life insurance policy?
Joe has a life insurance policy that has a face amount of $300,000. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. What kind of policy is this? What is a corridor in relation to a Universal Life insurance policy?