What is sum assured and sum insured?
What is sum assured and sum insured?
Sum insured and sum assured are among the fundamental terms that an individual. The two terms are the basis on which a plan is evaluated. While a sum assured refers to the benefit, the sum insured is the reimbursement of insured loss.
What does sum insured mean in life insurance?
Sum insured is the value applicable to non-life insurance policies like car insurance. Sum assured refers to the benefit availed by the insured person or beneficiary. One can choose to get maturity benefit under specific types of life insurance plans. There is no maturity benefit involved related to the sum insured.
How sum assured is calculated?
While deciding sum assured for a life insurance policy, you must consider the number of years for which you aim to provide you family with protection. Multiply your family’s annual expenses to that number and then add that to the net liabilities t o get approximate sum assured.
What is the difference between sum assured and maturity amount?
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.
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 the sum assured calculated?
Is sum assured same as maturity value?
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 rider sum assured in LIC?
The LIC Term Rider Policy is an add-on benefit to the base policy that provides the beneficiary with the Sum Assured in case of the sudden demise of the insured within the policy period. This can only be added to non-linked plans at the commencement of the base policy at a nominal cost.
What is maturity sum assured?
Insurance Term – Sum Assured and Maturity Value 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. This would include the sum assured and the bonuses.
How can I check my LIC maturity amount?
To check the updates through SMS, one can type “ASKLIC” followed by the policy number and SMS it to the phone number 56767877 made available by the Corporation. “ASKLICAMOUNT.” All of the queries mentioned above can be resolved by sending the SMS code to the same number, that is, 56767877.
