What is Sum Assured in LIC – A Simple Explanation

Sum Assured – The Most Important Number in Your LIC Policy

Sum Assured (SA) is the guaranteed amount LIC will pay on death or maturity. Everything in your policy is calculated based on SA: Premium = rate × SA/1000. Bonus = rate × SA/1000. Death benefit = SA + bonus. It's the "face value" of your insurance policy.

How Much SA to Choose?

Rule of thumb: SA = 10× annual income (for term plans) or 5-10× annual premium (for endowment). For a 30-year-old earning ₹8L/year: Term SA should be ₹80L-₹1Cr. Endowment SA: Choose based on savings goal.