What typically happens to the face amount of the policy if premiums are waived and the insured dies?

When premiums are waived and the insured dies, the face amount of the policy is typically paid out in full. This is a fundamental feature of most life insurance policies, which are designed to provide financial protection to the beneficiaries regardless of premium payment status due to certain conditions like a waiver of premium due to disability.

In this situation, even though premiums are not being paid, the insurance coverage remains in force, allowing the full face amount to be payable at death. This ensures that the intended financial support is delivered to the policy's beneficiaries at the time of the insured's death, fulfilling the purpose of the life insurance contract to provide death benefits.

Other choices involve scenarios that do not align with standard life insurance practices, such as doubling the face amount or reducing it, which are not typical outcomes in cases where premiums are waived and the insured passes away. Thus, the full face amount remains the standard outcome under these circumstances.