How to Determine the Face Value of a Life Insurance Policy

by M. Scilly

    The face value of your life insurance policy is your death benefit -- the amount of money that you will leave your beneficiary should you die. To determine the face value of your policy, review it and add up your benefits, including extra benefits added beyond the basic coverage offered.

    Step 1

    Locate the schedule of benefits that summarizes the benefits that your beneficiary is entitled to in the event of your death.

    Step 2

    Total the value of the benefits that will be paid to your beneficiary.

    Step 3

    Locate the policy's riders if applicable. A rider includes any additional benefits that you have added beyond the standard policy.

    Step 4

    Add the value of the benefits contained in the rider to the total benefits for the basic policy. This will give you the total death benefit of the policy, otherwise known as the policy's face value.

    Items you will need

    • Insurance policy

    Tip

    • Your life insurance benefit may change over time. To calculate the current face value, use the current value for the benefits.

    About the Author

    M. Scilly is a writer and editor who writes for various online publications, specializing in business and management. He has a fondness for travel and photography. In his free time he enjoys marathon training.

    Zacks Investment Research

    is an A+ Rated BBB

    Accredited Business.