Face Amount

The face amount is the base death benefit stated on the front page of a life insurance policy — the amount the insurer agrees to pay beneficiaries upon the insured's death, assuming the policy is in force and the death is not excluded. It is also called the face value or policy amount. The actual death benefit paid can differ from the face amount: it may be higher if the policy includes an accidental death rider or paid-up additions, or lower if there are outstanding policy loans or if the policy is in a reduced paid-up state. The face amount is the primary number used to compare policies and calculate premiums.