Final answer:
The benefit amount paid to an insured person for dismemberment under an insurance policy is called the Principal sum. It's a pre-determined lump-sum payment made in the event of dismemberment covered under the policy.
Step-by-step explanation:
The benefit amount paid to the insured for dismemberment is called the Principal sum. When an insurance policy includes dismemberment coverage, it means that in the event of a loss of limb, sight, or other specified body part or function, the insurance company will pay out a pre-determined principal sum to the insured. This sum is typically a lump-sum payment and is part of the overall coverage provided by accident or life insurance policies.