1 / 7

Sum insured vs sum assured

Sum insured" and "sum assured" are terminologies commonly associated with insurance policies, often used interchangeably but with distinct meanings.

David286
Télécharger la présentation

Sum insured vs sum assured

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. UNDERSTANDING THEDIFFERENCE: SUMINSUREDVS SUMASSURED

  2. INTRODUCTION Ininsurance,suminsuredandsum assuredareessentialterms. Understanding the dierence between them is crucial for policyholders. Sum insuredreferstothemaximumamount aninsurerwillpayforacoveredloss, whilesumassuredistheguaranteed amounttheinsurerwillpayuponthe insured's death or at the policy's maturity.

  3. SUMINSURED Sum insured defines the maximum liability oftheinsurerincaseofacoveredloss.Itis commonly used in general insurance policies such as health, property, and vehicle insurance. The policyholder choosesthesuminsuredamountbasedon the estimated cost of potential loss or damage.

  4. SUMASSURED Sumassuredisatermtypicallyassociated withlifeinsurancepolicies.Itguaranteesa specific amount to the beneficiary in the event of the insured's death or at the policy's maturity. The sum assured is predetermined and outlined in the policy document.

  5. KEYDIFFERENCES Theprimarydierenceliesintheir application.Suminsuredappliesto generalinsurance,providingcoverage forpotentiallosses,whilesumassured isspecifictolifeinsurance,assuringa predeterminedamounttobeneficiaries. Bothtermsarecrucialfor understandingtheextentofcoverage andbenefitsofaninsurancepolicy.

  6. CONSIDERATIONS Whenpurchasinginsurance,it'svitalto carefullyassessboththesuminsured andsumassuredtoensureadequate coverage.Forgeneralinsurance,the suminsuredshouldalignwithpotential lossscenarios,whileforlifeinsurance, thesumassuredshouldmeetthe financialneedsofthebeneficiariesin theinsured'sabsence.

  7. CONCLUSION Understanding the distinction between sum insured and sum assuredis fundamental for making informed decisions when selecting insurance policies. Policyholders should evaluate their coverageneedsandconsiderbothelementstoensure comprehensiveprotectionandfinancialsecurityforthemselves andtheirbeneficiaries.

More Related