Insurance
Sum assured / insured
Also known as: Cover amount, Sum insured
The maximum amount an insurer will pay out on a claim under your policy.
In life insurance it is the sum assured, the payout to your family. In health insurance it is the sum insured, the yearly cap on claims.
Pick a cover big enough to actually matter: 10-15x income for term, and enough for a real hospital bill for health.
Under-insuring to save on premium defeats the whole purpose of buying a policy.
For example
A ₹5L health sum insured means the insurer pays hospital bills up to ₹5L in a year; costs beyond that come out of your pocket.