Are you curious to know what is sum assured in lic? You have come to the right place as I am going to tell you everything about sum assured in lic in a very simple explanation. Without further discussion let’s begin to know what is sum assured in lic?
Life Insurance Corporation of India (LIC) is renowned for providing a spectrum of insurance solutions, and a fundamental concept within LIC policies is the “Sum Assured.” This article aims to unravel the intricacies of what sum assured entails, its significance, and how it influences the benefits associated with LIC policies.
What Is Sum Assured In LIC?
Sum Assured in LIC policies represents the guaranteed amount that the policyholder or their nominee receives in the event of the insured event occurring, such as death or maturity. It serves as the core component determining the financial protection and benefits associated with the policy.
Sum Assured And Maturity Amount:
The sum assured is directly linked to the maturity amount in LIC policies. The maturity amount is the total payout provided to the policyholder when the policy reaches its maturity date. The sum assured plays a pivotal role in determining this amount, ensuring that policyholders have a clear understanding of their expected returns.
What Is Sum Assured In LIC In Hindi:
In Hindi, “Sum Assured” in LIC policies translates to “आवश्यक राशि,” representing the guaranteed amount. Understanding the sum assured in Hindi is essential for policyholders to make informed decisions regarding their insurance coverage.
Sum Assured Meaning:
The meaning of sum assured lies in its role as the guaranteed financial protection offered by an insurance policy. It represents the amount that will be paid out to the policyholder or their nominee under specified circumstances, providing a sense of security and financial stability.
Sum Assured Example:
Consider an example where an individual purchases an LIC policy with a sum assured of ₹1,000,000. In the unfortunate event of the policyholder’s demise during the policy term, the nominee would receive the sum assured amount of ₹1,000,000. This example illustrates the direct correlation between the sum assured and the financial coverage provided by the policy.
How To Calculate Sum Assured:
The calculation of the sum assured is influenced by various factors such as the policyholder’s age, health condition, desired coverage, and the type of policy selected. LIC employs actuarial methods to determine an appropriate sum assured that aligns with the policyholder’s needs and risk profile.
What Is Sum Assured In LIC Policy Pdf:
For a detailed resource on sum assured in LIC policies, a PDF document can serve as a valuable tool. It may encompass comprehensive information, examples, and guidelines on understanding and optimizing the sum assured in different LIC insurance products.
Conclusion:
In conclusion, understanding the concept of sum assured in LIC policies is paramount for policyholders seeking financial protection and stability. The sum assured not only determines the payout in case of an unfortunate event but also plays a crucial role in shaping the overall benefits and maturity amount associated with LIC policies. Whether you are contemplating the purchase of an LIC policy or are already a policyholder, a clear comprehension of the sum assured ensures that you make well-informed decisions tailored to your financial goals and security.
FAQ
How Is LIC Sum Assured Calculated?
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 Difference Between Maturity And Sum Assured?
The sum assured is the guaranteed amount paid to the nominees upon the policyholder’s death, and the maturity amount is the sum provided to the policyholder at the end of the life insurance policy term.
What Is Sum Assured Examples?
For example, policyholder buys a health insurance plan with critical illnesses cover like cancer, and the sum assured is Rs 20 lakh. If they are diagnosed with cancer or any other critical illness covered in the plan, they will receive a sum assured of Rs 20 lakh.
What Is The Difference Between Sum Assured And Premium Amount In LIC?
The sum assured in insurance is determined at the time of policy purchase. It remains unchanged throughout the policy period. The premiums you pay for the policy are decided against the sum assured value. When the insurer pays the sum assured to you or your nominee, the policy stands terminated.
I Have Covered All The Following Queries And Topics In The Above Article
What Is Sum Assured In LIC Policy
What Is Sum Assured In LIC Pdf
What Is Sum Assured In LIC Example
Sum Assured And Maturity Amount
What Is Sum Assured In LIC In Hindi
Sum Assured Meaning
Sum Assured Example
How To Calculate Sum Assured In lic
what is sum assured in lic