What is the 'Face Amount' of a life insurance policy?

Question: What is the 'Face Amount' of a life insurance policy?

Answer options:

• The total premiums paid over time.
• The cash surrender value of the policy. ✅ The amount of the death benefit as stated on the first page of the policy.
• The amount of the policy plus all accumulated dividends.

Correct answer: The amount of the death benefit as stated on the first page of the policy.

Explanation: The 'Face Amount' or 'Face Value' is the amount of insurance coverage stated on the first page of the policy, which is the sum paid upon the death of the insured (excluding riders or accidental death additions).