Sum Assured
✓ Last verified 14 Sep 2026
The short version
Sum assured is the guaranteed amount a life insurance policy pays out on a covered event (typically death) - fixed at policy purchase, distinct from sum insured, which is the health insurance equivalent for the annual claim ceiling.
Sum assured is set when a life insurance policy is purchased and generally doesn't fluctuate with claims the way a health policy's sum insured can (health cover typically resets each renewal year, while life cover's sum assured is fixed for the policy term). See our article on how much life cover you actually need for how to size this figure properly, rather than picking a round number.
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