1. Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    Face Amount usually means the amount of death benefit provided by the policy. For example If I had a $500,000 level term policy, the "face amount" would be $500,000.
    Answered on March 8, 2013
  2. J Scott BurkePRO
    President, Newbury Inc., Evansville, Indiana
    There is a little more to it than that. The face amount is the original benefit amount once the policy is full benefit. The death benefit can change but the face amount does not.

    For instance, if someone buys a two year graded policy with a $10,000 face amount, the policy may only pay $3,000 death benefit if they die in the first 12-months. It would usually pay $7,000 if they die in months 13-24 and would pay $10,000 (equal to the face amount) after the 24th month.

    Other policies are increasing death benefit policies. The death benefit grows each year but the face amount is always the original face. For instance a preneed funeral policy through a funeral home may start with a $10,000 death benefit AND a $10,000 face amount. But 15-years later the death benfit could be $15,000 and the face amount would still be $10,000.

    Other policies have dividends that buy paid up additions. These can also increase the death benefit but the original policy face amount is the same.
    Answered on April 4, 2013
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