How is the "sum assured" in an insurance policy defined?
A. The amount paid by the insurer when the policyholder dies
B. The premium amount paid to the insurer
C. The amount of loan that can be taken on the policy
D. The amount of money paid back to the policyholder on maturity
Explanation:
The sum assured is the amount of money the insurer promises to pay the policyholder or their nominee upon the occurrence of an insured event such as death or critical illness.