The fixed amount a life insurance policy agrees to pay out on a valid claim.
The sum assured is the amount of cover written into a life insurance contract. On a level term policy it stays the same for the whole term; on a decreasing term policy it falls over time, usually in line with a repayment mortgage. Choosing the figure means adding up what the money would need to do — clear debts, replace income, cover specific costs — rather than picking a round number. The sum assured, the term and the premium are linked: more cover and longer terms cost more.