What is basic sum assured in life insurance

What is the meaning of sum assured? A sum assured is a fixed amount that is paid to the nominee of the plan in the unfortunate event of the policyholder's demise. The insurance company pays this money as per the sum chosen by you at the time of purchasing the policy.

What is the difference between sum assured and basic sum assured?

Though both the terms sound the same, in principle, the two have different meanings altogether. Sum assured relates to the benefit of your guaranteed return insurance plan, and sum insured defines the reimbursement of an insured loss.

How do you calculate basic sum assured?

The base amount taken in your calculations for the sum assured should ideally be 15-20 times your annual household expenses, as a general thumb rule depending upon the tenure of your policy as well as the number of years you are expected to remain in the workforce.

What is the basic sum assured in LIC?

The basic sum assured under LIC policies is the guaranteed cover amount payable to the assigned beneficiary on the death of the life assured. The amount is pre-defined by the policyholder at the time of policy issuance as per his/her assessment of the future needs of their families.

What is basic sum assured in SBI Life?

Basic Sum assured is the absolute amount of benefit, which is guaranteed to become payable on maturity and as chosen by the policyholder at the inception of the policy. For more details on risk factors, terms and conditions of SBI Life – Smart Money Back Gold, read the following documents carefully.