Face of Policy

Last updated: August 10, 2017

What Does Face of Policy Mean?

Face of policy refers to the amount of coverage the insured pays for in an insurance policy. Because this figure is often included on the policy's top sheet or face, it is often referred to as the policy's face value. In terms of life insurance, it refers to the amount the policyholder would receive upon the insured's death or the death benefit.


Insuranceopedia Explains Face of Policy

It is important to note that the face value of a life insurance policy is different from the cash value. Cash value is the value of the savings and investments that have built up over time with permanent policies. It is subject to fluctuations in the market and how well the investments perform; however, the face of policy never changes. That means beneficiaries would receive the face amount or death benefit, even if the investments did not do well and signficantly reduce the cash value.


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