Sum assured in a life insurance policy from LIC is the guaranteed amount of money that the insurance company will pay to the policyholder’s beneficiaries if the policyholder dies during the policy term. It’s a fixed amount that the policyholder chooses when purchasing the policy, and it’s a key component of the policy because it determines the premiums. A higher sum assured means a higher premium.
The sum assured can include the benefit provided on add-on riders, as well as the guaranteed financial benefit provided at policy maturity. For example, in a savings insurance plan, the policy provides a guaranteed maturity benefit, which is also considered a sum assured.
