1. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    The face value of a life insurance policy is the death benefit amount specified in the contract. Most policies issue a level death benefit which remains the same through out the term of the contract. However some policies use an increasing death benefit option that increases the face amount over time. Some permanent cash value polices may also increase the face amount due to performance of the crediting method usually later on in the life of the policy.
    Answered on September 5, 2013
  2. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    The face value of a life insurance policy is the amount that would be paid to the beneficiary if the insured person died at any given time. It could be higher or lower than the original face amount purchased. Some reasons for that are if the policy is graded during the first years of the policy, if it has a decreasing death benefit, if there is a loan against the policy that was not repaid, or if the policy actually grew in cash value beyond the original face amount.
    Answered on February 11, 2015
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