Why State Life
State Life offers complete satisfaction to our valued policyholders from issuance of policy, providing after sales service and optimizing return on Life Fund through a quality culture and to maintain ourselves leading life insurer in Pakistan. The sum assured and declared bonuses payable on maturity or death (God Forbid) are guaranteed by the Government of Pakistan.
As the name suggests, the plan is a savings and protection scheme which facilitates the policyholder to pay the premium in a lump sum single payment at the time of inception. The policyholder receives complete sum assured and full-term bonuses ranging from 10 years to 50 years at maturity or earlier death under this plan. The benefit structure is same as Endowment Plan (Table 03).
|
Policyholder's age at issue |
40 |
|
Selected Sum Assured |
5,000,000 |
|
Term of Policy |
20 |
|
Annual Premium |
251,150 |
|
Total Premium payable |
5,023,000 |
Mr. Ahmed is a salaried man working in a private company who plans to save for higher education of kids and retirement.
At the age of 50 years, he avails loan facility from SLIC (80% of cash value i.e. 3.1 million) when his son plans to move abroad for higher studies. The amount was almost 1.24 million of the total amounts paid for 10 years. He manages to repay the loan at the age of 55 years.
After 20 years at his retirement, he receives maturity of approx. 17.8 million (almost 4 times of his premium paid) and plans for vacation with his wife after retirement.
|
Policyholder's age at issue |
20 |
|
Selected Sum Assured |
1,000,000 |
|
Term of Policy |
10 |
|
Annual Premium |
98,640 |
|
Total Premium payable |
986,400 |
Mr. Ali is a young entrepreneur who runs a start-up company from the age of 18 years. He plans to save for the business expansion and to finance his marriage expenses.
After 5 years, he avails loan facility from SLIC (80% of cash value) to open a new office and to stock-up his inventory to complete a huge order and he receives approx. 3.5 lac. He manages to repay the loan in 2 years.
At the age of 30 years on the completion of his policy, he decided to get married and receives 1.4 million which is approx. 1.4 million of his total amounts paid in short period of 10 years.
|
Policyholder's age at issue |
30 |
|
Selected Sum Assured |
2,000,000 |
|
Term of Policy |
20 |
|
Annual Premium (ADB, FIB) |
106,020 |
|
Total Premium payable |
2,120,400 |
Ayesha is a salaried single mother who plans to invest for the better future of her kids and protection of family.
But unfortunately, she dies in an accident in the 4th year of purchasing her policy. Her kids will receive Accidental Death Benefit (ADB) along with main plan benefits. Also, proportionate amount of sum assured will be paid under Family Income Benefit (FIB) attached with the policy. The total of approx. 4.4 million will be paid to her kids which is 10 times of total amount paid till death.
Her children will not be financially dependent on anyone and will receive annual income benefit (Rs. 200,000) equal to 10% of the sum assured on each policy anniversary till the remaining tenure of policy. This amount will also be increased by State Life.
Why Buy and what needs does this fulfill?
The benefits under the plan can be further increased by attaching supplementary contract.
|
Plan Features |
Description |
|
Plan Type |
Endowment with surplus participation of 97.5% |
|
Minimum/Maximum Age at Entry |
10-65 Years |
|
Minimum/Maximum term |
10-55 Years, Max maturity age = 75 |
|
Bonus participation |
State Life announces a bonus every year according to its actuarial valuation and 97.5% of surplus is distributed as bonuses to all with-profit policies. The bonuses declared by State Life are guaranteed by the Government of Pakistan. |
|
Where are the funds invested |
State Life has a comprehensive investment policy and tactically invests its funds in Government Securities, Blue Chip Equities, Banks, etc. |
|
Death Benefit |
Basic Sum Assured plus accrued Bonuses are payable on death (God forbid) of the life assured under this plan |
|
Surrender/ Early Withdrawal |
The policyholder has the option to surrender the policy after 2 years’ premium have been paid. |
|
Maturity Benefit |
Basic Sum Assured plus accrued Bonuses are payable upon survival of the life assured to maturity date. |
|
Loan Facility |
Under this plan, after the payment of third premium, if the policy holder immediately needs money, he/she can avail a maximum loan of 80% of the net surrender value of the policy. |
|
Free-Look Period |
The policy can be cancelled at the option of the policyholder within (14) fourteen days of its commencement date. |
|
Grace period: |
Policyholders can pay the premium to state life within a grace period of 31 days after it falls due. |
|
Underwriting Requirements |
The plan will be subject to underwriting as per standard practice of State Life |
|
Add-Ons |
Description |
|
Accidental Death Benefit (ADB) |
If this supplementary contract is availed, then on his/her accidental death (God forbid) during the term of policy, an amount equal to basic sum assured becomes payable. |
|
Term Insurance Rider (TIR) |
If this supplementary contract is availed, then on his/her death (God forbid) during the term of contract, an amount equal to basic sum assured becomes payable. |
|
Accidental Indemnity Benefit (AIB) |
If this supplementary contract is availed, then on his/her accidental death (God forbid) during the term of policy, an amount equal to basic sum assured becomes payable. Proportionate amount of sum assured is payable in the event of loss of two or more limbs or loss of sight in both eyes. For other injuries, weekly indemnities for total or partial disability are paid. Thereafter, an annuity will be payable upto maximum of 10 years. |
|
Family Income Benefit (FIB) |
If this supplementary contract is availed, then on his/her death (God forbid) during the term of contract, an annuity of 10% to 50% per annum of the basic sum assured is payable under the main policy till the expiry of rider. |
|
Waiver of Premium (WP) |
If this supplementary contract is availed, then on his/her total or permanent disability due to accident, the premium on the policy is waived. |
|
Special Waiver of Premium (SWP) |
If this supplementary contract is availed, then the premium on the policy to be waived during total or permanent disability when he/she is unable to engage in any occupation. |
|
Guaranteed Insurability |
If this supplementary contract is availed, SLIC gives the right to purchase additional life insurance upto specified maximum amounts on specific further dates at standard rates, without evidence of insurability being required at such later dates. |
|
Hospital and Surgical (H&S) |
If this supplementary contract is availed, then it provides benefits in case of his/her hospitalization in SLIC’s approved hospitals, as result of sickness or accident. |
|
Refund of Premium Rider (RPR) |
If this supplementary contract is availed, then on his/her death (God forbid) during the term of contract, it provides refund of premium paid. |
|
Age |
Main Plan Premium Rate (Rs 1000 Sum Cover) |
Add-ons |
|
|
FIB (Rs 1000 Sum Cover) |
ADB (Rs 1000 Sum Cover) |
||
|
10 |
47.54 |
- |
- |
|
15 |
47.59 |
- |
- |
|
20 |
47.73 |
3.07 |
1.25 |
|
25 |
47.99 |
3.56 |
1.25 |
|
30 |
48.42 |
4.37 |
1.25 |
|
35 |
49.20 |
5.86 |
1.25 |
|
40 |
50.71 |
8.70 |
1.25 |
|
45 |
53.47 |
13.95 |
– |
|
50 |
58.13 |
– |
– |
|
55 |
65.27 |
– |
– |
This product is underwritten by State Life Insurance Corporation of Pakistan. The past performance of State Life Insurance Corporation of Pakistan is not necessarily a guide to future performance. A personalized illustration of benefits will be provided to you by our representative. Please refer to the notes in the illustration for detailed understanding of the various terms and conditions. A description of how the contract works is given in the policy privileges and conditions. This products brochure only gives a general outline of the product features and benefits and the figures used above are indicative and for illustration purposes only.
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.
