Definitions for "Principal Sum"
In insurance, the lump sum payable for accidental loss of life, dismemberment, or loss of sight.
In a health and accident policy, the amount specified to be paid in the event of covered losses. In a life policy, the amount of insurance provided by the policy at the time of issue.
The amount payable, under life and health insurance policies, in one sum in the event of accidental death and in, some cases, accidental dismemberment. When a contract provides benefits for both accidental death and accidental dismemberment, each dismemberment benefit is an amount equal to the principal sum or some fraction thereof.
capital as contrasted with the income derived from it