Legal Definitions - face of policy

Definition: The term "face of policy" refers to the amount of money that an insurance policy will pay out in the event of a claim. It is also known as the "face amount" or "face value" of the policy.

Examples:

• John purchased a life insurance policy with a face value of $500,000. This means that if he were to pass away, his beneficiaries would receive a payout of $500,000.
• Mary's car was damaged in an accident, and she filed a claim with her auto insurance company. The face value of her policy was $10,000, which is the maximum amount that the insurance company would pay out for the damages.

These examples illustrate how the face of policy represents the maximum amount of money that an insurance policy will pay out in the event of a claim. It is important for policyholders to understand the face value of their policies so that they can ensure they have adequate coverage for their needs.