💡 Understanding the Difference: Sum Assured vs. Sum Insured

💰 Sum Assured

• 🛡️ A predetermined amount paid to the policyholder or their nominee in the event of the policyholder’s death during the policy term.
• 🔗 Commonly associated with life insurance, term insurance, and endowment plans.
• ✅ Represents a guaranteed payout regardless of actual losses.

🏥 Sum Insured

• 💵 Provides reimbursement for actual losses, damages, or injuries sustained, up to the specified coverage limit.
• 🏠 Pertains to general insurance like health, motor, or home insurance.
• 📋 Works on the principle of indemnity, covering only the actual expenses incurred.

🔑 In Summary

• Sum Assured ➡️ Guaranteed payout 💸
• Sum Insured ➡️ Compensation for actual losses 🏥

Always ensure you know which applies to your policy for better financial planning! ✅