Life Insurance Face Value

With regards to life insurance, the term face value denotes the sum insured by a life insurance policy. The policy’s face value is the amount which will be paid out as a death benefit if you die within the life insurance term.

The face value of a life insurance policy is typically determined at the time that the policy is taken out. With most forms of life insurance, a policy’s face value remains the same throughout the life of the policy.

In the case of whole life insurance products, including those with living benefits such as the “savings life insurance” and “mixed life insurance” policies offered by many Swiss insurance providers, policies have both a face value and a cash value. The cash value represents a policyholder’s equity in their policy, and should not be confused with the face value.

More on this topic:
Term life insurance comparison
Life insurance: Useful tips
Term Life Insurance vs. Mixed Life Insurance

Editor Daniel Dreier
Daniel Dreier is editor and personal finance expert at