What Is The Face Amount Of A Life Insurance Policy?

The face amount of a life insurance policy is the amount of money you will receive in case of your death. This is the amount that your beneficiaries will receive if you die and it is the amount that you need to pay as a premium to the insurance company. The face amount is usually specified on the policy document.

Beneficiaries

The face amount is determined by the beneficiaries that you have chosen. If you have one beneficiary then the face amount is equal to the premium that you have paid. But if you have two or more beneficiaries then you will receive the face amount of the policy for each beneficiary.

Death Benefit

If you die then the face amount of your policy will be paid to the beneficiaries. There is no limit to the amount that can be paid to the beneficiaries.

Annual Premium

The annual premium is the amount of money that you need to pay to the insurance company every year to maintain your life insurance policy. If you don’t pay the premium then the policy will expire and the face amount will not be paid to the beneficiaries.

Premium Tax

If you are a resident of India then the premium tax will be deducted from the face amount of your policy. So, if you are paying a premium of Rs 10,000 then the face amount will be reduced by Rs 10, This means that the face amount will be Rs 9.

Conclusion:

So, these are some of the basic things that you should know about the face amount of a life insurance policy. You should know the face amount and the premium that you have to pay every year so that you can protect your family in case of your death.