Small Face Value

Small face value refers to a life insurance policy with a relatively low death benefit compared to typical life insurance policies. These policies are designed to meet specific needs, such as covering final expenses or providing a modest inheritance to beneficiaries, rather than offering extensive financial support or income replacement.

The face value, or the amount the policy will pay out upon the insured's death, is typically much lower than standard policies, often ranging from a few thousand to tens of thousands of dollars.

These small face value policies can be an attractive option for individuals who may not qualify for larger policies due to age or health issues, or for those who have limited financial means but still want to ensure they leave behind funds to cover burial costs or settle final debts.

They are also used by those who have largely self-insured through savings and investments but want a small policy to ensure specific final expenses are not a burden to their families.