What is face amount on life insurance policy

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.

What is the difference between face amount and cash value for life insurance?

The face amount is the initial death benefit on a life insurance policy. But as the cash value of the policy changes over time, it can alter the total death benefit either above or below the face value.

Is face amount the same as cash value?

A permanent life insurance policy including whole life insurance and universal life insurance has a face value and a cash value, which are two distinct values. The face value is the death benefit. The policy owner's beneficiaries will receive this amount when he or she dies.

Is the face amount the death benefit?

The face amount is the initial amount of money stated on the life insurance application when you first buy the policy and is intended to be paid as a death benefit to your heirs. The death benefit is the actual amount the carrier pays your beneficiaries, and you can tack on additional benefits with riders.

What happens to the face amount of a whole life policy?

With whole life insurance, you pay the same premium for as long as you keep the policy. This means your payments won't increase as you age. The policy stays in effect for your whole life, unless you cancel it or stop making payments.