Principal Sum

The amount payable, under Life and Health InsuranceFinancial protection against all or part of the medical care costs to treat illness or injury. Health policies, in one sum in the event of accidental death and in, some cases, accidental dismembermentLoss of body members (limbs), or use thereof, or loss of sight due to injury.. When a contractThe formal legal document, also known as the "policy" that describes the agreement between the policyholder provides benefitsThe amount payable by the insurance company to a claimant, assignee or beneficiary under each coverage for both accidental death and accidental dismemberment, each dismemberment benefitAmount payable by the insurance company to a claimant, assignee, or beneficiary when the insured suffers a loss. is an amount equal to the principalThis term is used to mean the employer of an agent; or the amount of money borrowed, or the amount of sum or some fraction thereof.