What Is Face Value Of Life Insurance Mean? 
The face value of a life insurance policy is the amount of insurance that is purchased . The death benefit is the amount of money that is paid to the beneficiary upon death . For Term life insurance , only the face value is paid out upon death , because Term life insurance does not build up any cash value . Policies that can build up cash value , like Whole Life insurance or some Universal Life insurance , will pay the beneficiary the face value -LRB- original amount for which the policy was taken out -RRB- plus whatever cash value has built up in the policy and not been depleted through loans , to make policy payments , etc. . 