Within the context of dismemberment, what term is used to denote the amount paid for the dismemberment of an insured?

In the context of dismemberment insurance, the term used to describe the amount paid for the dismemberment of an insured is "capital sum." The capital sum is the specific value designated in the policy that reflects the financial compensation provided to the insured or their beneficiary in the event of the loss of a limb, eyesight, or other specified body parts due to an accident. This amount is often a portion of the total principal sum provided in an accident policy, which covers accidental death or dismemberment.

Understanding this term is crucial as it directly relates to the financial protection offered in individual policies that cover the consequences of severe accidents. The capital sum is typically predefined and is meant to provide a clear understanding of the coverage the insured can expect to receive.

Other terms in the options have distinct meanings; for example, the principal sum refers generally to the total amount payable upon the insured's death due to an accident, and the accidental death benefit refers specifically to the payout made in the event of death caused by an accident. The payor benefit applies typically to a policy provision that ensures premiums are paid if the policyholder becomes disabled or dies, which differs from direct dismemberment payouts.