Glossary

Sum assured

Also called cover amount, face value.

The amount the insurer pays on a valid claim. The headline cover figure a policy is described by.

The sum assured is what your nominee receives if a death claim is admitted. It is the figure people mean when they describe a policy by its size.

It is not the same as what you will pay, and not the same as what the policy is worth if surrendered. It is the promise the contract makes on a claim.

Related terms

  • Death benefit The amount payable to the nominee if the life assured dies during the policy term.
  • Nominee The person you name to receive the payout on a death claim.
  • Income multiple cap The limit on cover relative to income, which is why insurers ask what you earn.

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