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.
This plan provides a financial security to the annuitant by paying regular payments during the annuitant’s lifetime. The premium will be paid by single premium and the policyholder can elect a guarantee period and deferment period under the plan. The plan does not carry any surrender value after the deferment period
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Plan Features |
Description |
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Plan Type |
Annuity (Single or Multiple lives) |
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Minimum/Maximum Age at Entry |
- |
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Minimum/Maximum term |
Life, certain and life, second to die, first to die etc. |
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Bonus participation |
Annuity Plan |
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Where are the funds invested |
Annuity Plan |
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Death Benefit |
On death during the deferment period, higher of surrender value or refund of the single premium paid. |
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Surrender/ Early Withdrawal |
Deferred annuity can be surrendered for cash value during the deferment period. There is no surrender value after the deferment period. |
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Maturity Benefit |
No Maturity Value |
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Loan Facility |
No Loan Value |
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Free-Look Period |
The policy can be cancelled at the option of the policyholder within (14) fourteen days of its commencement date. |
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Grace period: |
Policyholders can pay the premium to state life within a grace period of 31 days after it falls due. |
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Underwriting Requirements |
The plan will be subject to underwriting as per standard practice of State Life |
Premium rates for the annuity plans are highly dependent on the prevailing investment conditions. Premium rates are determined on case-to-case basis.
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.
