What is the difference between face value and death benefit?

Answer 1

Your death benefit will always be the amount paid to your beneficiaries should you die. Your Face value is almost always the same thing as your death benefit and certainly it is with term insurance. With Cash Value policies however, if you ever make a withdrawl or take a loan on your cash value, this will effect the face value should you die and not pay it back. So suppose you take out a $10K loan on a $100 K policy. Your death benefit is still $100K but your face value should you die is only going to be $90K