What is sum assured and sum insured?

Sum insured is the value applied to Non-life insurance. Sum assured is the value applied to Life insurance policies. There is no monetary benefit rewarded, its reimbursement as per the Sum Insured. Sum assured is a monetary benefit that is given to the insured or his/her family after policy’s term is up.

What is mean by sum assured in LIC?

The sum assured is the guaranteed amount that the beneficiary of your life insurance policy will receive in case of your death. The sum assured is also known as the coverage or the cover of your insurance policy.

What is the difference between maturity amount and sum assured?

The sum assured is the amount of money an insurance policy guarantees to pay up before any bonuses are added. In other words, sum assured is the guaranteed amount the policyholder will receive. Maturity value is the amount the insurance company has to pay an individual when the policy matures.

What is sum insured with example?

Sum Insured meaning The maximum amount that the insurance company can pay to the policyholder in case of any loss or damage suffered by him shall be termed as the sum insured. Rahul has a health insurance policy with a sum insured of Rs 5 lakhs. Now, he gets hospitalized and claims bills worth Rs 3.8 lakhs.

Who is assured in insurance?

Definition: Life assured or insured is the person(s) whose life is covered in the insurance contract. Description: In the event of a contingency, the insured can claim the amount or in the event of the death of the assured, the nominee will receive the insurance amount.

Is sum assured paid on maturity?

Maturity amount is the value or sum paid by your insurance provider after your policy matures or when its term ends. While sum assured is the guaranteed amount paid to the policyholder without including any bonus amount, maturity amount includes additional bonuses as well.

How is sum assured in LIC calculated?

The basic format is Sum Assured + Bonuses + Final Additional Bonus (if declared). An example for calculation demonstration: Mr Z buys a policy of Sum Assured 15 Lakh with a term of 20 years. The insurance company includes Bonuses and Final Additional Bonus in the maturity value as per their company policy.

What is difference between sum and assured value?

Sum assured is the total amount paid to the beneficiary in case of policyholder’s demise. On the other hand, fund value is net asset value on that particular day multiplied by the number of units held.

What is minimum sum assured in LIC?

The minimum sum assured or the death benefit on a life insurance policy shall not be less than 10 times the annual premium for individuals below 45 years of age. And for individuals above 45 years of age, minimum sum assured is 7 times the annual premium.

What is death sum assured?

Sum assured is the money that the insurer pays in case the insured event takes place. So, in the case of a term policy on death of the policyholder, the beneficiary gets the sum assured. Under a term policy there is no difference between the death benefit and the sum assured.