When you buy life insurance, you’re buying assurance that when you die, your insurer will pay out a sum of money to your loved ones. That number is known as your policy’s face amount, or face value, and it affects how much you’ll pay in premiums.
While it usually stays the same, there are a few situations that can trigger a change in face value.
What is the face value of life insurance?
The face value is the amount of money your insurer has agreed to pay out when you die.
