What is the Face Amount on my policy?

If you’ve ever looked at your policy design or even your member portal with your insurance company, you may have come across a term called “face amount.”

It’s common for people to think this “face amount” is their total death benefit on their policy. With many traditional whole life policies, this number is a more accurate reflection of that amount. But with our specially designed and engineered policies, this amount doesn’t show the whole picture.

Let’s look at your premium

By now, you may know that we design our premium with base plus PUA. The base part of your premium is what most traditional insurance companies use for the majority of your premium and it’s what buys your “face amount” of death benefit. However, the PUA also buys death benefit, but this amount is not added to your “face amount,” which can be confusing. Many people think their death benefit is lower than they expected it to be. But insurance policies are not designed with IBC in mind, so don’t forget there’s more than meets the eye when it comes to this “face amount.” 

The complete picture

Look, instead, at your “current death benefit” or “total net death benefit” amount. This will reflect your base, PUA, and dividend that has been added into your policy, increasing your total death benefit each year. Rest assured, if something were to happen to you, as the insured person on the policy, your beneficiaries would not only get the “face amount.” They would also get the entire death benefit from all sources.

And remember, Infinite Banking isn’t about the death benefit. So try not to get too caught up in this number. It’s the living benefit that we’re focusing on–the cash value.

When you’re ready to get started on creating your financial legacy or if you have more questions, most questions can be answered by watching this video. Start there and then schedule a consult with my team when you’re ready to begin.