ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The $50, 000 amount of coverage is called the: Death benefit or face value. The face value, face amount, or death benefit is the amount of money that a life insurance policy will pay to the beneficiary on the death of the insured person.

Detailed explanation-2: -The face value of life insurance is the dollar amount equated to the worth of your policy. It can also be referred to as the death benefit or the face amount of life insurance. In all cases, life insurance face value is the amount of money given to the beneficiary when the policy expires.

Detailed explanation-3: -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.

Detailed explanation-4: -A death benefit is the primary reason someone purchases a life insurance policy; it’s the amount of money your insurer will pay out to your beneficiaries if you die during the policy’s term.

Detailed explanation-5: -The face value of a life insurance policy is the coverage amount you purchase. The cash surrender value in a life insurance policy is the cash value minus any loans, surrender charges, and any other fees the insurance company may charge.