Endowment insurance
Endowment insurance provides for the payment of the face amount to your beneficiary if death occurs within a specific period of time such as twenty years, or, if at the end of the specific period you are still alive, for the payment of the face amount to you.

Is face amount the same as cash value?

Face value is different from cash value. Cash value is the amount you receive from some policies if you surrender the policy early. But this is only true for permanent forms of life insurance. There are two primary types of life insurance policy: term and permanent.

What is the face value of a life insurance policy?

In terms of life insurance, it refers to the amount the policyholder would receive upon the insured’s death or the death benefit. It is important to note that the face value of a life insurance policy is different from the cash value. Cash value is the value of the savings and investments that have built up over time with permanent policies.

What does the face of a insurance policy mean?

Face of Policy. Definition – What does Face of Policy mean? Face of policy refers to the amount of coverage the insured pays for in an insurance policy. Because this figure is often included on the policy’s top sheet or face, it is often referred to as the policy’s face value.

How is death benefit different from face value?

The second kind of policy, the dual feature cash value and protection policy, builds cash value separate from the face value through a lump sum payment or regular periodic payments. The death benefit is therefore the face value plus all increases in cash value from dividends or investments.

What are the advantages of cash value in life insurance?

The Advantage of Cash Value. While your beneficiaries do not have access to the cash value of your whole life or universal life insurance policy, the cash value does offer benefits to you, the policy holder. The money that accumulates in a cash value account on a permanent life insurance policy is tax deferred, meaning that it will not be taxed.