principal sum

principal sum definition - business

principal sum

The amount payable on an insurance policy. For example, the beneficiary of a life insurance policy receives a principal sum of $50,000 upon the death of the insured.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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