Face Amount
The initial amount of the death benefit stated in the life insurance policy. This is also sometimes referred to as the face value.
Detailed Explanation
The face amount is the amount that will be paid out to the beneficiary upon the insured's death, before any adjustments from riders or policy loans.
Practical Example
John's term life insurance policy has a face amount of $1,000,000. This is the initial death benefit that his beneficiaries would receive if he were to pass away during the policy's term.
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