The Committee Policy is a short-term savings and protection scheme offered by State Life Insurance. Here are the key details of the Committee Policy:
Eligible Ages and Terms:
Minimum Age: 20 years
Maximum Age: 50 years
Terms Available: 3 and 5 years only
Minimum Sum Assured: Rs. 75,000
Maximum Sum Assured:
For ages 20 to 40 years: Rs. 400,000
For ages 41 to 45 years: Rs. 300,000
For ages 46 to 50 years: Rs. 150,000
This policy offers a unique short-term savings and protection solution.
Policyholders can receive a lump sum amount of money at a specified time or in the event of death (God forbid), if it occurs earlier.
The policy is denominated in Pak Rupees, and all premiums and claims will be settled in Pak Rupees.
The policy does not participate in the Actuarial Surplus of State Life.
Premiums are payable on a quarterly basis.
Only Standard Lives are eligible to own this plan.
Premium is a level amount payable quarterly and is calculated as follows:
Basic Quarterly Premium = (Sum Assured) / (Term of Assurance x 4)
Term Insurance Rider (TIR) and/or Accidental Death Benefit (ADB) can be attached to enhance the coverage and protection offered by the Committee Policy.
This policy is designed for individuals looking for a short-term savings and protection solution, with the flexibility to receive a lump sum at a specified time or as a death benefit in case of an unfortunate event.
The policy's terms and coverage amounts are structured to provide financial security within a limited timeframe.
Death claim is usually payable to the nominee/ assignee or the legal successor, as the case may be. However, if the deceased policyholder has not nominated/ assigned the policy or not made a will, the claim is payable to the holder of a succession certificate or such evidence of title from a Court of Law.
State Life distributes its profits @ 97.5% (highest in the insurance industry) among it policyholders every year in the form of bonuses. Bonuses are credited to the account of the policyholders and paid at the time of maturity or at the time of death (if earlier). Bonus is declared as a certain amount per thousand of sum assured.
Life insurance is normally offered after a medical examination of the life to be insured. However, to facilitate greater spread of insurance and also as a measure of relaxation, State Life has been extending insurance cover without any medical examination, subject to certain conditions. This facility is called Non-medical Scheme.
Underwriting of a risk involves consideration of material facts on the basis of which a decision will be taken whether to accept the risk and if so at what rate of premium.
The amount payable by State Life on termination of the policy contract at the desire of the policyholder before the expiry of policy term is known as the surrender value of the policy.
It is not possible to raise money against your life insurance policy. However, there is a provision available by way of assignment or mortgaging the policy provided the policy has been in force for a minimum stipulated period.
The calculation of life insurance premiums is primarily based on age of the person to be insured, sum insured and term of the policy.
The policyholder has to apply for loan in a prescribed form and submit the policy document with the form duly completed.
A policyholder can repay the loan amount either in part or in full anytime during the term of the policy.
If the policy has acquired a surrender value and a premium has remained unpaid beyond the grace period, the policyholder will entitled to benefits under one of the following two options given hereinafter, depending on the option exercised (if any) in his Proposal for this policy:
A – Automatic paid-up Option
This policy will be converted into a paid-up policy. The paid-up Sum Insured will be specially calculated to allow for the clearance of all outstanding dues of State Life against the policy.
B – Automatic Premium Loan Option
So long as the net surrender value of the policy equals or exceeds any due premium remaining unpaid beyond its grace period, State Life will continue to keep this policy in full force, and treat the said premium as paid by creating an automatic premium loan against the net surrender value of the policy.
