What Does Life Insurance Face Amount Mean? 
There is a little more to it than that . The face amount is the original benefit amount once the policy is full benefit . The death benefit can change but the face amount does not . For instance , if someone buys a two year graded policy with a $ 10,000 face amount , the policy may only pay $ 3,000 death benefit if they die in the first 12-months . It would usually pay $ 7,000 if they die in months 13-24 and would pay $ 10,000 -LRB- equal to the face amount -RRB- after the 24th month . Other policies are increasing death benefit policies . The death benefit grows each year but the face amount is always the original face . For instance a preneed funeral policy through a funeral home may start with a $ 10,000 death benefit AND a $ 10,000 face amount . But 15-years later the death benfit could be $ 15,000 and the face amount would still be $ 10,000 . Other policies have dividends that buy paid up additions . These can also increase the death benefit but the original policy face amount is the same . 