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 offers child protection and savings for child’s future. The predetermined term of the insurance policy is designed in a way to facilitate the financial needs at the crucial stage of child’s life (i.e. either 18, 21 or 25 years). A lump benefit is provided to the policyholder on the completion of the specified term of policy. This plan best suits to the parents who are conscious of their child’s future and want to plan saving for their higher education, marriage and or setting-up business. In case of death of the policyholder (God forbid), the future premiums are waived and a regular income benefit is paid to the insured child till the end of the policy term. Also, the policy continues to participate in SLIC surplus.
| Policyholder's age at issue | 30 |
| Child’s age | 3 |
| Selected Sum Assured | 500,000 |
| Term of Policy | 18 |
| Annual Premium | 31,650 |
| Total Premium payable | 569,700 |
Mr. Ahmed is a salaried man who cannot afford higher education fee or further high expenses in future. Therefore, he plans to save for his son’s future expenses.
The policy matures when his son turned 21 years and plans to attain higher education in a different city. The total maturity claim was approx. 1.4 million (2x of his premium paid) and all the expenses related to accommodation and fees were managed.
| Policyholder's age at issue | 40 |
| Child’s age | 5 |
| Selected Sum Assured | 1,000,000 |
| Term of Policy | 20 |
| Annual Premium | 70,310 |
| Total Premium payable | 1,406,200 |
Mr. Ali is a businessman who want to ensure his child’s future along with his life protection.
But unfortunately, he was only able to pay three premium and he died at the age of 43 years. His family received proportionate income as a financial support. Thereafter, an annual income of 24% of sum assured (2.4 lac) will be paid till the maturity of policy for 17 years.
The policy continues in SLIC and at maturity all the accrued bonuses plus sum assured is payable to the child. Almost 3.7 million is payable to the child which is 17 times of what his father invested. Now at the age of 25 years, he would be able to start his own set up and use the money as capital for his company.
| Policyholder's age at issue | 35 |
| Child’s age | 2 |
| Selected Sum Assured | 2,000,000 |
| Term of Policy | 23 |
| Annual Premium (ADB) | 119,580 |
| Total Premium payable | 2,750,340 |
Mr. Omer is the only breadwinner in the family and wants to save for her daughter’s marriage.
After 15 years, he availed loan facility of SLIC (80% of cash value) i.e. 2 million to manage the expenses in performing Umrah. This is almost 1.13 million of the accumulated amount paid till date. He was able to repay the loan in 2 years.
Unfortunately, he died in an accident in the 18th policy year. Her daughter will receive Accidental Death Benefit (ADB) along proportionate amount of sum assured at death. 24% of sum assured will be paid to his daughter annually for 4 years and she could pay her university fee after her father’s death.
At the expiry of policy when she is 25 years old, she received full sum assured and accrued bonuses. The total of approx. 8.6 million (4x of total amount paid till death) and she can finance her future expenses for marriage and education accordingly.
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 |
Child: 1-15 Years, Payer: 20-60 years |
|
Minimum/Maximum term |
10-24 Years, Max maturity age = 70 (term should be such that the benefit becomes payable when the child attains age of 18, 21 or 25 years) |
|
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 |
In case of payer’s death (God forbid), future premiums are waived and the regular income benefit of Rs. 240 per 1000 sum assured is paid until completion of the policy. Upon expiry, the child receives accrued bonuses over entire term and sum assured as a lump sum benefit or in five equal annual instalments.
In case of child’s death (God forbid), policy holder has option to; 1. Continue the policy for another child 2. Get higher of refund of premium paid till death or the cash value of the policy and terminate the contract. 3. Continue the policy without naming another child (in which case the benefit of Refund of Premium as provided above under condition (2) will not be available). |
|
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 policyholder on the 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. |
|
Age |
Main Plan Premium Rate (Rs 1000 Sum Cover) |
Add-ons |
|
ADB (Rs 1000 Sum Cover) |
||
|
20 |
55.37 |
1.25 |
|
25 |
56.70 |
1.25 |
|
30 |
58.91 |
1.25 |
|
35 |
62.97 |
1.25 |
|
40 |
70.71 |
1.25 |
|
45 |
85.02 |
– |
|
50 |
109.18 |
– |
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.
