Maturity Value

Specified amount received by an insured at the end of an endowment period (usually the face amount of the endowment policy), or by the owner of an ordinary life policy (usually the individual insured) who lives to a given age.

Amount to be paid on the maturity date of a financial instrument. It may be a greater amount (i.e., bond issued at a discount) or a lesser amount (i.e., bond issued at a premium) than the initial price. Maturity value is typically the face value of a bond or note. Assume that a five-year $20,000 bond is issued at 95-at a discount. The proceeds at issuance are $19,000, but at the due date of the five-year bond, the maturity value will be $20,000.