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
  3. Tim WilhoitPRO
    Owner, Your Friend 4 Life, Brentwood TN
    Face amount on a life insurance policy is the amount of life insurance proceeds paid to the designated beneficiary or beneficiaries. When you hear someone speak of having a one million dollar life insurance policy they are almost always speaking of the face amount. The benefit of a large face amount of life insurance proceeds if set up correctly is tax free to the beneficiary.
    Answered on January 6, 2015
  4. David G. Pipes, CLU®, RICP®PRO
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Face amount is the amount stated on the policy that will be paid to the beneficiary in the event of the death of the insured or maturity of the policy. The face amount is what most people talk about when they discuss their life insurance policy. The company may pay the “face amount” to the beneficiary in a variety of methods. They are not limited to the lump sum death benefit.
    Answered on February 6, 2015
  5. Peggy MacePRO
    President and Senior Agent, Outlook Life, Most of the U.S.
    The face amount is the amount of life insurance you buy. The death benefit is the amount that goes to the beneficiary in the event of the insured person's death. Those are usually the same amount.

    However, if the policy is graded during the first years of the policy, or if the death benefit grows beyond the original amount of coverage purchased, or if a loan was taken out and not repaid, the face amount and death benefit could differ.
    Answered on February 9, 2015
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