Basic Sum Assured

Business, Legal & Accounting Glossary

Definition: Basic Sum Assured

Basic Sum Assured

Full Definition of Basic Sum Assured

A term used in conjunction with policies such as low-cost endowment assurance and low start endowment assurance.

These sorts of policies operate on a ‘with-profits’ basis and often in conjunction with repayment of a loan or mortgage. If the policyholder dies during the term, a guaranteed death benefit repays the loan.

However, to guarantee to pay the entire loan at maturity would incur very high premiums. Accordingly, a policy with lower premiums guarantees to repay only a proportion of the loan amount at maturity (the basic sum assured). The expectancy then is that the balance will be repaid out of reversionary and (possibly) terminal bonuses.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Basic Sum Assured. Payroll & Accounting Heaven Ltd.
March 31, 2023
Chicago Manual of Style (CMS):
Basic Sum Assured. Payroll & Accounting Heaven Ltd. (accessed: March 31, 2023).
American Psychological Association (APA):
Basic Sum Assured. Retrieved March 31, 2023
, from website:

Definition Sources

Definitions for Basic Sum Assured are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th April, 2020 | 0 Views.