What Is A Face Amount Of A Life Insurance Policy?
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63333 POINTSview profilePeggy MaceMost of the U.S.The face amount of a life insurance policy is the original dollar amount for which the policy was taken out. It is also the amount that is paid to the beneficiary or insured (if the policy matures), minus any loans, or increased by any values stated in the contract.Answered on September 4, 2013flag this answer- 225 POINTSview profileJames GoldenIt is the amount of money your beneficiary will recieve upon your or the primary insured. Commony called the death benefit. I personally prefer to call it the loving living benefit. The face amount (ex. 100,000) can be increased by dividend accumulations or by cash surrender value if you have a indexed universal life policy. I usually recommend at least 10 times the amount of money earned by the insured plus other fixed expenses like a home mortgage or business loan.Also the number in the family and for how long they would be dependent. Be very very wise in choosing whom the beneficiary and alternate beneficary will be.Answered on September 4, 2013flag this answer
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