What does the sum assured represent in Family Income Benefit?

The sum assured in a Family Income Benefit policy specifically represents an annual payment that will be provided to the policyholder's beneficiaries in the event of the insured's death. This benefit is designed to replace the lost income and provide financial support for a specified period, thus ensuring that the family can maintain their standard of living during a difficult time.

This benefit structure distinguishes Family Income Benefit from other types of life insurance policies, such as those that pay a one-time lump sum or a payout at retirement. With Family Income Benefit, the focus is not merely on a single payout but rather on ongoing financial support, making option B the correct choice. This mechanism serves to alleviate the financial burden on the family over time, rather than just offering a one-off assistance that might not suffice for ongoing living expenses.