Life insurance benefit amount?
Life Insurance Face Amount
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The face amount or payout amount is just another name for your life insurance policy’s death benefit – in other words, the amount of money that will be paid to your beneficiary if you die.
Life Insurance Payout Amount
Determining the right face amount or payout amount for your beneficiaries is very important. You don’t want to over-insure or underinsure. What is the life insurance payout amount that’s right for you? This is the perfect place to find out!
Life insurance benefit amounts
Here are some of the more popular face amounts. Click on a policy amount to learn more.
What does face amount mean on a life insurance policy?
The face amount in life insurance is the amount of coverage or death benefit that your beneficiary will be paid by the insurance company when the insured dies.
who gets life insurance payout?
Your primary beneficiary or contingent beneficiary gets the life insurance payout when you die. For example, if you buy a term life policy for $750,000, your named beneficiary will be paid the face amount after you pass away.
Your contingent beneficiary is paid if your primary beneficiary can’t collect the death benefit. The easiest way to explain this situation is if you and your primary die in a car accident. Your primary beneficiary can’t collect, so your contingent would get the life insurance payout.
How Do I Choose the Right Face Amount?
It’s very important to make sure you buy a life insurance policy with the proper face amount. You don’t want to be overinsured and pay for coverage you don’t need. You also don’t want to put your loved ones at financial risk and be underinsured. In order to find the right amount of life insurance, you’ll want to conduct a Needs Analysis (use our tool below).
Life Insurance Needs Analysis
When buying life insurance, you need to find out how much money your loved ones will need when you pass away. The basic way to analyze this is by finding:
How much money your family will need right away when you die to pay for immediate debts. These are known as final expenses and will cover:
- your funeral
- any medical bills
- your mortgage
- any outstanding debt
- and settling your estate if required.
How much money your family will need in the future to continue their lifestyle and household? This is usually referred to income replacement.
Once you calculate how much life insurance you need simply click here and get a free life insurance quote.
You’ll be able to compare rates from the top life insurance companies and see which carriers may offer you the best deal. You can also contact us if you have any questions or want a customized quote. Call us and we’d be happy to help.