Life cover & benefits
What is basic sum assured?
Basic sum assured is the guaranteed amount a life insurance policy promises to pay, before any bonuses, riders or other additions. In a term plan it is the amount paid on death. In a savings plan it is the base on which bonuses and maturity values are worked out.
In short
- Basic sum assured = the guaranteed base amount of a life policy.
- Bonuses and riders are added on top of it.
- Sum assured (life) pays a fixed amount; sum insured (health) is a ceiling.
- In group term life, it is often set as a multiple of salary.
What is the meaning of basic sum assured?
The core amount the insurer guarantees under a life policy. It is chosen when you buy the policy. Riders, such as accidental death cover, and bonuses in participating plans are added to it, so the amount finally paid can be higher.
Sum assured or sum insured: what’s the difference?
Sum assured is used in life insurance and is paid as a fixed amount. Sum insured is used in health and general insurance and is the ceiling on what a policy repays. Our page on sum insured explains the health side.
How is sum assured set in group term life?
Usually as a multiple of salary, or a flat amount for everyone. Above the free cover limit, the insurer needs medicals. Our page on the free cover limit explains why that matters.
Frequently asked questions
What is basic sum assured in life insurance?
The guaranteed base amount a life policy promises, before bonuses or riders.
Is sum assured the same as sum insured?
No. Sum assured is a fixed amount paid under life cover; sum insured is the ceiling on what health or general insurance repays.
What is the sum assured in group term life?
Usually a multiple of salary or a flat amount, set by the employer.
What happens when you talk to us
A 20-minute video call with a Growth Advisor. No obligation, and no quote pushed. It opens with a five-minute video from our founder on how the benefits stack works and why Ethika exists; the rest is your questions. You’ll leave with an honest read on your current cover and claims experience, and a straight answer on whether we can genuinely help, even if you never become a client.
20 minutes with a Growth Advisor. No obligation.
A note on this page. Everything here is general information, not insurance, legal, financial or tax advice, and nothing is an offer. No insurer or product is named or recommended. What any policy covers depends on its own wording and schedule. For advice about your situation, talk to us.