Retained face amount is the portion of a life insurance policy's death benefit that the primary insurer keeps on its own books after ceding any excess amount to reinsurers. It reflects the net risk the company holds per life or per policy and is determined by internal retention limits and reinsurance treaties. Retained face amount is crucial for managing concentration risk, capital requirements, and exposure to large claims. For jumbo cases or heavily reinsured portfolios, the retained face amount may be a small fraction of the total death benefit in force.

Within carriers, retained face amount is tracked through underwriting and policy administration systems, guiding how much additional coverage can be issued on a given life before reinsurance or internal limits require review. Reinsurers and regulators both pay attention to retention practices as part of solvency oversight. Advisors may hear about retained face amount when they are told that a carrier has reached its internal limit on a life and must involve reinsurers or another company for additional coverage. Understanding retained face amount helps wholesalers explain why layering coverage among multiple carriers is common in large estate or business cases.