In the context of accidental death policies, what term refers to the maximum amount payable in the case of accidental death?

In the context of accidental death policies, the term that refers to the maximum amount payable in the case of accidental death is known as the principal sum. This term is used to designate the specific payout that the insurer will provide to the beneficiaries upon the accidental death of the insured. The principal sum is a predetermined amount that is stipulated in the policy itself, and it serves as a clear financial limit for the insurer's liability under an accidental death benefit.

This term highlights the focus on the severity and nature of the event covered by the policy—specifically, death resulting from an accident. Understanding this term is crucial for policyholders to know exactly what they can expect to receive in the event of an accidental death claim.

The other terms have different distinctions; for instance, “capital sum” may refer to a lump sum amount in some insurance contexts but is not specifically used in the context of accidental death policies. The "accidental death benefit" often describes the payout feature itself rather than the specific maximum amount. "Term riders" refer to additional coverage options added to a policy but do not specifically denote the payout amount for accidental death.