GENERAL KNOWLEDGE

Detailed explanation-1: -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.

Detailed explanation-2: -the insurance company agrees to pay a sum of money upon the death of the insured person. the beneficiary – the person or persons named by the policy owner – will receive policy proceeds (benefit) upon the death of the insured person.

Detailed explanation-3: -A death benefit is the primary reason someone purchases a life insurance policy; it’s the amount of money your insurer will pay out to your beneficiaries if you die during the policy’s term.

Detailed explanation-4: -Sum at risk ( or the risk amount) in life insurance usually means the part of the capi-talised annuity or the insurance benefit not covered by the created reserve. It may be an amount by which the insurer must top up the reserve in case of death deviating from the expected mortality.