The
face amount of a life insurance policy is the original dollar amount of life insurance protection or coverage for which
the policy was taken out.
The face amount of life insurance is also the amount of money that is paid to the beneficiary
or insured (if the policy matures), minus any loans, or increased by any values
stated in the contract.
The face amount of a life insurance policy is
the amount of money your beneficiary will receive upon the death of the insured person. The face amount of the life insurance policy is commonly called the death benefit.
The death benefit is paid out to the beneficiary upon the death of the insured. Usually, there are no federal taxes taken out of the death benefit payment.
