What is a 'life insurance face amount'?

The life insurance face amount refers specifically to the total sum of money that is guaranteed to be paid to the beneficiaries upon the death of the insured, assuming the policy is in force at that time. This amount is outlined in the insurance policy and represents the primary financial benefit that the policy provides. Beneficiaries can rely on this amount to cover expenses such as funeral costs, debts, or ongoing living expenses, ensuring financial support in the event of the policyholder's passing.

The other choices do not accurately represent the concept of a face amount. The total amount payable during the policy period can include premiums and other potential payouts but doesn't reflect the singular benefit specified by the face amount. The cash value of the policy represents the savings component of certain types of life insurance and can fluctuate over time; it is not the same as the guaranteed death benefit. Lastly, costs associated with obtaining the policy refer to premiums and fees, which are distinct from the face amount that beneficiaries receive upon death.