The difference between the legal reserve of a whole life policy and the face amount of insurance is the

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The legal reserve of a whole life policy is the amount of money set aside by the insurance company to ensure they can meet future obligations to pay the policy's death benefit. The face amount of insurance is the amount of money the policy will pay out upon the death of the insured. The difference between these two amounts is the net amount at risk, which represents the amount of money the insurance company is exposed to in the event of the insured's death. The cash value, premium, and dividend accumulations are all related to the policy's ongoing value and are not directly related to the difference between legal reserve and face amount.

The Difference Between the Legal Reserve of a Whole Life