The capital sum in coverage terms refers to which benefit?

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Prepare for the North Carolina Health Insurance Test. Study with flashcards and multiple choice questions; each comes with hints and explanations. Get ready for your assessment!

Multiple Choice

The capital sum in coverage terms refers to which benefit?

Explanation:
Capital sum is a lump-sum benefit paid out when a covered event, typically dismemberment or permanent loss of a body part or function, occurs. It’s designed as a one-time payout to compensate for permanent impairment, not ongoing protection or income. That’s why this term points to benefits for dismemberment. Accidental death would be a separate death benefit, premium refunds aren’t related to a lump-sum payout, and disability benefits are usually periodic payments rather than a single capital sum.

Capital sum is a lump-sum benefit paid out when a covered event, typically dismemberment or permanent loss of a body part or function, occurs. It’s designed as a one-time payout to compensate for permanent impairment, not ongoing protection or income. That’s why this term points to benefits for dismemberment. Accidental death would be a separate death benefit, premium refunds aren’t related to a lump-sum payout, and disability benefits are usually periodic payments rather than a single capital sum.

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