What is face amount in Accounting

The face amount is the value stated on the face of a financial instrument. The term usually applies to the amount stated on a bond certificate, which the issuer is obligated to pay when the bond 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.

What is a face value in accounting?

Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the holder at maturity, typically in $1,000 denominations.

What do you mean face amount?

In short, your face value is the amount of money your beneficiaries will receive from your insurance company at the time of your death. You might hear it called your death benefit, coverage amount or face amount.

Is face amount and face value the same?

The face value of life insurance is the dollar amount equated to the worth of your policy. It can also be referred to as the death benefit or the face amount of life insurance. In all cases, life insurance face value is the amount of money given to the beneficiary when the policy expires.