Final answer:
The face value of an insurance policy, specifically life insurance, is paid when the insured individual dies. This does not apply to other types of insurance (health, car, home) that pay based on other circumstances like medical expenses, vehicle damage, or stolen property.
Step-by-step explanation:
The face value of an insurance policy is paid under certain circumstances which are specified in the policy. One such circumstance is C. Death of the Insured. In the case of a life insurance policy, the face value is paid out to the beneficiaries when the policyholder dies. It's important to differentiate between different types of insurance: health insurance pays for medical expenses, car insurance covers damages or theft of a vehicle or damage to others, and home or renters insurance covers for stolen property or damage to the dwelling. However, life insurance is the one that pays the face value upon the death of the insured. Other scenarios like natural disasters, accidental damage, or stolen property may lead to insurance payouts, but these are not typically paid at the life insurance policy's face value unless they directly lead to the insured's death.