Principal sum

{
  "id": "MLC-T-INS-002663",
  "term": "Principal sum",
  "field": "Insurance and risk management",
  "definition": "The maximum lump-sum benefit payable under an accidental death and dismemberment (AD&D) policy for a qualifying loss, such as accidental death. This amount is specified in the policy's schedule of benefits and serves as the basis for calculating other payments. For dismemberment, the policy pays a specified percentage of the principal sum, such as 50% for the loss of one hand or 100% for the loss of sight in both eyes.",
  "url": "https://mlchart.com/terminology/insurance/principal-sum/"
}