tutup buku la.

like insurance you are paying money per annum in order to get some protected value, this is what the called as sum covered. this is not like traditional saving like it you put rm2000 in a year, you are getting interest on thosse saving, the sum covered is like i give you do this amount fund from the start, so every year you pay me principal+interest, if every year got untung, i let you keep the untung. after the policy matured, i give you the agreed sum covered + bonus.

bahasa mudah, i give you loan for this amount, you pay me every year/month. since the loan amount is kept by me, i manage the fund for you, if got untung, i give you some, after 20 years, i give you hefty money, but we are done now.

make sense?