What does the term 'capital sum' refer to in the Accidental Death and Dismemberment Rider?

The term 'capital sum' in the context of the Accidental Death and Dismemberment Rider specifically refers to the amount that is paid out in the event of dismemberment due to an accident. This sum is generally expressed as a percentage of the policy's total face amount.

When an individual suffers a loss such as the loss of a limb or eyesight as a result of an accident, the policy typically provides a predetermined percentage of the face value to the insured or their beneficiaries. This calculation takes into account the severity of the injury, with a greater percentage being paid out for more severe dismemberments.

In contrast, amounts related to natural death or late claims would not be categorized as a 'capital sum' under this rider, as the term is specifically associated with the benefits paid for the accidental loss of life or limb. Thus, the capital sum distinctly addresses benefits linked to dismemberment rather than other types of payouts or fees.