What is the difference between the life insurance death benefit and the face amount? - Insurance

 The death benefit is the amount paid to life insurance beneficiaries, whereas the face amount is the death benefit stated on the life insurance policy.
With a term life insurance policy the death benefit and the face amount is nearly always the same. The amounts could be different if there are additional benefits payable under an accidental death and dismemberment rider or other special provisions.

 With a permanent life insurance policy, such as whole life insurance, the death benefit could be less than the face amount if loans or withdrawls were taken against the cash value (the investment portion of permanent life insurance policies) and not repaid. In such a case, the outstanding loan is subtracted from the death benefit. For example, if the face value of a whole life insurance policy is $200,000 and there is an outstanding loan against cash value of $10,000, the death benefit would be $190,000.