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What Is Sum Assured In LIC? Know More

What is sum assured in LIC? Sum Assured is the minimum guaranteed benefit that a life insurance policyholder will receive in the event of death during the policy term. In other words, it is the minimum payout that an insurer agrees to pay the policyholder’s beneficiaries in the event of death. 

The sum assured may be expressed as either a lump sum or as an annuity, which pays out a regular income over a period of time. The sum assured is typically the primary reason why people purchase life insurance, as it provides financial security for their loved ones in the event of their death. 

What is sum assured in LIC?

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LIC’s Sum Assured is the minimum guaranteed benefit that a policyholder will receive upon maturity or death of the policy, whichever is earlier. In case of death of the policyholder, sum assured is payable to the nominee. The sum assured under different policies offered by LIC may vary depending on various factors like age, policy term, etc.

LIC’s sum assured is one of the highest in the industry and is one of the main reasons why LIC is a preferred life insurance company by many.

What are the benefits of having a sum assured in LIC?

There are many benefits of having a sum assured in LIC. The most important benefit is that it provides financial security to the policyholder’s family in the event of death or maturity. It can also help to cover expenses related to funeral costs, debts, and other financial obligations. The sum assured can also be used as collateral for loans or other purposes. Talk to an LIC agent to learn more about the benefits of having a sum assured in LIC.

How is the sum assured determined?

The sum assured is determined by the policyholder’s age, health, and other factors. It is important to talk to an LIC agent to determine the sum assured that is right for you. The agent can help you choose a policy that provides the right amount of coverage for your needs.

What if I need more or less coverage?

The sum assured can be increased or decreased depending on the policyholder’s needs and preferences. Talk to an LIC agent to learn more about what is sum assured in LIC and how it can benefit you.

Are there any drawbacks to sum assured?

One potential drawback of sum assured is that it may not be enough to cover all of the policyholder’s debts and expenses. It is important to make sure that the sum assured is adequate for the needs of the policyholder and their family.

How can I increase my sum assured?

In most cases, the sum assured can be increased by paying a higher premium. However, it is important to speak with an insurance agent to determine if this is possible and what the associated costs would be.

What happens if I do not have a sum assured?

If the policyholder does not have a sum assured, the insurance company may be unable to pay out the death benefit. This could leave the loved ones of the insured person with little or no financial support. It is therefore important to make sure that you have adequate coverage in place.

How can I find out how much sum assured I need?

The amount of sum assured that is right for you will vary depending on your individual needs and situation. It is therefore important to speak with an insurance agent to get a better understanding of what is available and how much coverage you may need.

What is the difference between sum assured and face value?

The face value is the amount of money that will be paid out by the insurance company in the event of the death of the insured person. The sum assured is the minimum guaranteed benefit that the policyholder will receive.

How is the sum assured paid out?

The sum assured is generally paid out as a lump sum to the beneficiary or policyholder’s estate. If there is more than one beneficiary, the benefit will be divided among them.

Read Also: What is Term & Whole Life Insurance? Know Your Perfect Plan

Final Words On What Is Sum Assured In LIC

Sum assured is the minimum guaranteed amount that an insurance company will pay out in the event of a policyholder’s death. It is also known as the death benefit. The sum assured can be used to cover final expenses, such as funeral costs, or it can be paid out to beneficiaries in order to help them cope financially after a loved one’s death.

When choosing a life insurance policy, it is important to consider the sum assured. This will ensure that you have coverage in place that will provide your loved ones with peace of mind in the event of your death.

Thank you for reading our article about what is sum assured in LIC. We hope you found it helpful. If you have any questions, please contact us. We would be happy to help you.