Meaning
Sum Assured is the fixed amount an insurance policy promises to pay.Definition
It’s the guaranteed payout from an insurance company to the policyholder or beneficiaries upon a specified event (e.g., death). This amount is determined at policy purchase.How It Works
You select the Sum Assured when buying insurance. If the insured event occurs, this pre-agreed amount is paid out as per policy terms.Importance
It provides crucial financial security, protecting your loved ones and helping meet future financial needs.Author
