Face Value
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The face value of bonds usually represents the principal or redemption value. Interest payments stated on bonds are expressed as a percentage of face value. Before maturity, the actual value of a bond may be greater or less than face value, depending on the interest rate payable and the perceived risk of default. As bonds approach maturity, actual value approaches face value.
The face value of a life insurance policy is the death benefit. In the case of so-called "double indemnity", life insurance policies, the beneficiary receives double the face value in case of accidental death.
The face value of property, casualty or health insurance policies is the maximum amount payable, as stated on the policy's face or declarations page.
