How Much Does Life Insurance Payout? 
You determine how much your life insurance will pay out , when you buy the policy . At that time , you will choose the `` death benefit '' , also called `` face amount '' . This is the amount your beneficiary would receive if you were to die within the time frame of the policy . If you bought 10 year term , the policy would only pay out the face amount if you died within the first 10 years . If you buy permanent insurance , it should pay out upon death at any age , but be sure you understand the guarantees so you know that before you buy . 