Face Value (Face Amount)
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The stated amount of coverage on a life insurance policy.
Definition
Face value is the amount of coverage stated on your life insurance policy—typically the death benefit amount. It's the maximum your beneficiaries will receive upon your death. Some policies (like whole life) may pay more or less depending on loans, dividends, or riders.
Example
The policy had a face value of $250,000, which is what her family would receive as the death benefit.
More Life Insurance Terms
Coverage for a specific period with no cash value.
Permanent coverage with guaranteed cash value.
Flexible permanent coverage with adjustable premiums.
The amount paid to beneficiaries when the insured dies.
The person who receives the insurance payout.
The savings component of permanent life insurance.
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