What Is Insurance Face Amount?

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Insurance face amount is also commonly referred to as "face value." Learn about the insurance face amount with help from a professional financial adviser in this free video clip.

Part of the Video Series: Insurance & Personal Finance FAQs
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This is Teresa Dentino, CEO and founder of The Financial 411 in Woodside, California. We're going to talk about what determines the face amount of an insurance policy, also known as the face value. This term simply refers to the amount of the monetary benefit of the life insurance policy. In other words, the amount that would be paid by the insurance company upon the death of the insured. The name, face amount, comes from the fact that you can easily find the amount on what is known as the face page, or the declarations page of your policy, it will always be stated there. So, for example, if you buy a $10,000 life insurance policy, $10,000 would be the face amount of your policy. This is not to be confused with a cash surrender value that you may find within a whole life policy. Just keep in mind that the face value and the cash surrender value are two different things, and most likely be two different amounts. This is Teresa Dentino, CEO and founder of The Financial 411 in Woodside, California.

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