The face value of a life insurance policy is the amount of insurance that is purchased. The death benefit is the amount of money that is paid to the beneficiary upon death. For Term life insurance, only the face value is paid out upon death, because Term life insurance does not build up any cash value.
Policies that can build up cash value, like Whole Life insurance or some Universal Life insurance, will pay the beneficiary the face value (original amount for which the policy was taken out) plus whatever cash value has built up in the policy and not been depleted through loans, to make policy payments, etc.
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Policies that can build up cash value, like Whole Life insurance or some Universal Life insurance, will pay the beneficiary the face value (original amount for which the policy was taken out) plus whatever cash value has built up in the policy and not been depleted through loans, to make policy payments, etc.