[Solved] In the context of endowment insurance policies, what does the term 'sum assured' refer to? — Ans: The guaranteed amount payable on death or maturity excluding bonuses | Insurance Awareness

Insurance Awareness - Life Insurance - LIC

In the context of endowment insurance policies, what does the term 'sum assured' refer to?

AThe guaranteed amount payable on death or maturity excluding bonuses

BThe total premiums paid by the policyholder

CThe amount of bonus declared annually

DThe surrender value payable on policy termination

Step-by-Step Solution

Step 1: Define sum assured
Sum assured is the guaranteed amount payable by the insurer on death or maturity, excluding any bonuses or additional benefits.
Final Answer:
The guaranteed amount payable on death or maturity excluding bonuses → Option A
Quick Check:
The guaranteed amount payable on death or maturity excluding bonuses correctly defines the sum assured in endowment policies.

Quick Trick: Sum assured is the base guaranteed amount, bonuses are extra.

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In the context of endowment insurance policies, what does the term 'sum assured' refer to?