What is Face Amount in Life Insurance?
Face amount, also called face value, is the amount of money that is payable upon the death of an individual. It is the principal amount of the policy, and it is the amount that the insurance company is obligated to pay to the beneficiary.
The face amount in life insurance is the maximum payout that the policy will provide. This is important to know because it will dictate how much coverage you need and how much money you can expect to receive if you are unfortunate enough to die before your policy expires.