Asymmetrica Glossary

Sum Assured

Also called: SA, face value, face amount

The fixed amount the insurer guarantees to pay on death or maturity, before bonuses or additions.

The Sum Assured is the contractual base amount of a life insurance policy. It is the minimum the insurer will pay out — death benefits and maturity benefits are calculated as Sum Assured plus accrued bonuses (in participating plans) or Sum Assured plus guaranteed additions (in non-par plans).

In LIC's endowment family, the Sum Assured is the headline number you choose at policy purchase. It drives both the premium (higher SA → higher premium) and the §80C eligibility (premiums qualify for §80C deduction only if Sum Assured is at least 10× the annual premium for policies issued post-April 2012).

Worked example

A 30-year-old buying LIC Jeevan Labh with Sum Assured of ₹5,00,000 for a 21-year term pays roughly ₹26,500/year. On maturity, the payout is Sum Assured (₹5 L) + Vested Bonus + Final Additional Bonus.

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