Meaning & use
capital sum insurance
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Meaning
noununcountableformalbusinessfinance
An insurance policy that pays a single large amount of money, usually on death or at the end of a fixed period.
Grammar: Used as an uncountable noun; you can say 'a capital sum insurance policy' but not 'a capital sum insurance'.
Patterns
- capital sum insurance policy
- take out capital sum insurance
They took out capital sum insurance to protect their children if anything happened to them.
The company offers capital sum insurance as part of its employee benefits package.
Unlike income protection, capital sum insurance pays one large amount rather than regular payments.
Common combinations
- capital sum insurance policy
- He checked the terms of his capital sum insurance policy carefully.
- take out capital sum insurance
- Young families often take out capital sum insurance to cover their mortgage.
- provide capital sum insurance
- Some employers provide capital sum insurance for their staff.
Synonyms and how they differ
- lump-sum insurance
- A more everyday term for the same idea; it emphasizes the single payment rather than the capital nature.
- death benefit
- This refers specifically to the amount paid when someone dies, which is often a capital sum, but it does not cover policies that pay out on survival.
Word family
- capital sum noun
- The main amount of money paid or invested, not the interest or regular income.
Commonly confused: capital sum insurance or income protection insurance?
capital sum insurance vs income protection insurance
This pays a regular income if you cannot work, while capital sum insurance pays one large amount.
Practice
Which sentence uses 'capital sum insurance' correctly?
Choose one answer.
Option 1 is correct because capital sum insurance pays a lump sum, often on death. Option 0 is wrong because capital sum insurance does not pay monthly bills; that would be income protection. Option 2 is wrong because it pays a lump sum, not regular income. Option 3 is wrong because it is an insurance policy, not a savings account.
Make it your own
Write a sentence using “capital sum insurance”, then check it and compare it with the examples above.