How Much Does Life Insurance Payout? 
If an insured dies , thena `` permanent `` life insurance policy will pay the named beneficiary the face amount of the policy , minus any outstanding loan balance that there may be . In the case wherea `` term life policy '' is in force , then there would not be any outstanding loan balance since there is no cash value in a term policy . In that case , the face amount would be paid to the beneficiary . 