Definition of "Principal sum"

Danielle Eliot real estate agent

Written by

Danielle Eliotelite badge icon

Better Homes & Gardens Metro Brokers

Accidental death benefit option that can be added to a disability income (DI) policy under which a lump sum is payable at the loss of life, dismemberment, or loss of sight.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

In property coverage, ratio of the amount of insurance to the value of an insured property. This ratio, multiplied by the amount of the loss, determines the indemnification payment. ...

Same as term Expected Loss: probability of loss upon which a basic premium rate is calculated. ...

Organization of property insurance companies whose goal is to prevent and uncover fraudulent automobile fire and theft claims. ...

Financial analysis method established by the national association of insurance commissioners (naic) to detect problems of property and casualty insurance companies and life and health ...

Third-in-line beneficiary to receive benefits from an insurance policy should the primary and secondary beneficiaries not survive. ...

Date of the initial annuity payment. ...

Same as term Expiration: termination date of coverage as indicated on the insurance policy. ...

Maintenance of Social Security benefits at current dollar or percentage levels. Social Security benefits are indexed to the Consumer Price Index and rise in tandem with the Index. A benefit ...

Legal capability of those involved in mutual assent of making a contract, including an insurance contract. Those who have been deemed to be incompetent to make a valid contract include ...

Popular Insurance Questions