What is the amount paid to the beneficiary upon the insured's death known as?

The amount paid to the beneficiary upon the insured's death is referred to as the face amount or face value of the policy. This term specifically denotes the sum that is stipulated in the insurance contract that is payable upon the insured's passing. It represents the core promise of the insurance policy, guaranteeing that the specified amount will be delivered to the beneficiaries, provided that the policy is in force at the time of death.

In life insurance policies, the concept of face value is crucial because it determines the financial protection that will be granted to heirs or dependents, and it is typically established when the policy is issued. Understanding this term is essential for both agents and policyholders, as it helps clarify the extent of coverage and the benefits provided under the agreement.