Face amount

Face amount,

Definition of Face amount:

  1. Insurance: Sum of money for which an insurance cover is obtained, usually shown on the top sheet (face) of the policy. In life insurance, face amount is the sum paid on the policys maturity date, on the death of the insured, or (if the policy terms permit) on his or her total disability.

  2. Banking: (1) Amount written on a check the sum its payee is entitled to draw. (2) Principal sum advanced under a loan or mortgage agreement.

Meaning of Face amount & Face amount Definition