With respect to life insurance (particularly universal life insurance), it is a premium defined in the policy as the maximum amount of premium payable whereby a policy that will qualify as life insurance for income tax purposes. In other words, it is the maximum amount of premium or premiums that can be paid for any specific face amount in order to qualify the policy as life insurance for tax purposes.

The face amount defines the amount of insurance coverage on an insured provided under the basic face amount or rider face amount provided by the flex coverage rider in a respective policy. The flex/ flexible coverage rider enables additional life insurance coverage by allowing the owner (policyholder) to add term insurance on the insured under the policy as long as the policy is in force (effective) and the rider clause has not expired (not terminated). This rider is associated with an additional cost and is added at policy issue.