Insurance
What is Sum Assured (Cover Amount)? — Meaning, Definition & Example
Definition
Sum assured is the guaranteed amount that an insurance company promises to pay the nominee upon the occurrence of the insured event (death, critical illness, etc.). For term insurance, recommended sum assured is 10-15 times annual income plus liabilities.
💡 Real Example
If your annual income is ₹10 lakh and you have a ₹40 lakh home loan, ideal sum assured for term insurance = (10L × 15) + 40L = ₹1.9 crore.
🇮🇳 Sum Assured (Cover Amount) in Hindi / हिंदी में
बीमा राशि — बीमा राशि वह गारंटीकृत राशि है जो बीमा कंपनी बीमित घटना होने पर नॉमिनी को भुगतान करने का वादा करती है।
Sum Assured (Hinglish) — Sum assured wo guaranteed amount hai jo insurance company nominee ko pay karti hai jab insured event (death, illness) hota hai. Term insurance ke liye 10-15x annual income recommended hai.
❓ Frequently Asked Questions
What is Sum Assured (Cover Amount) in simple words?
Sum assured is the guaranteed amount that an insurance company promises to pay the nominee upon the occurrence of the insured event (death, critical illness, etc.). For term insurance, recommended sum assured is 10-15 times annual income plus liabilities.
Can you give an example of Sum Assured (Cover Amount)?
If your annual income is ₹10 lakh and you have a ₹40 lakh home loan, ideal sum assured for term insurance = (10L × 15) + 40L = ₹1.9 crore.
What is Sum Assured (Cover Amount) meaning in Hindi?
In Hindi, Sum Assured (Cover Amount) is called बीमा राशि. बीमा राशि वह गारंटीकृत राशि है जो बीमा कंपनी बीमित घटना होने पर नॉमिनी को भुगतान करने का वादा करती है।