When you buy a pure protection term life-insurance plan, the insurer promises to financially secure your dependents in the unfortunate event of your demise. The amount that is paid out to them is known as sum assured. The ideal sum assured will depend on your income (that will have to be replaced in case of your death), your dependents’ requirements and future goals as also your family’s assets and loans, among other things. A simple thumb rule states that it should be at least ten times your annual income. Sum assured, along with other factors like your age and health, determines the premium you pay for the policy.