What is the definition of Face Amount?

The Face Amount refers to the amount of insurance that a policy covers.

For life insurance policies, it is the amount stated in the insurance policy, the minimum that will be paid upon the death of the person insured, when the policy matures, or the total disability of the insured person (if the policy has a disability provision). The actual death benefit or maturity may be greater depending on dividends and other interest earnings, when applicable.

This amount is stated in the declaration page of the policy.

The face amount is one of the factors that will determine how much the insured will pay as premiums.

• Businessowners Policy / BOP
• Competitive State Fund
• Excess and Surplus Lines
• Employer’s Liability
• Blanket Insurance