State Life Ins.

Child Protection (Table-07)

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.

What is Child Protection Policy (Table 07)?

A joint life protection policy that covers the life of child or either of the parents. The plan facilitates those parents who wants to cater the financial needs of their children in case of death of the breadwinner of the family. The policyholder may secure the future of the child as this provides regular annual income benefit till the expiry of policy. The sum assured and bonuses payable under this plan will be payable if both the insured survives till the maturity of the policy.

Why Buy and what needs does this fulfill?

To ensure that your immediate family has some financial support in the event of your demise
To finance your children’s education and other needs
To have a savings plan for the future so that you have a source of income after retirement
To provide for other financial contingencies and life style requirements
To create a supplemental source of income for your loved ones
To provide life coverage along with an opportunity to build a living for financially secured future.

The benefits under the plan can be further increased by attaching supplementary contract.

State Life Plans and Features

Plan Features	Description
Plan Type	Endowment with surplus participation of 97.5%
Minimum/Maximum Age at Entry	20-50 Years of payor, 1-15 Years of child
Minimum/Maximum term	10-24 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, Real Estate rentals, Blue Chip Equities, and Banks.
Death Benefit	If the payor dies, the future premiums are waived and the annual income benefit of Rs. 100/- per 1000 sum assured is payable to child. Upon completion of the policy term, sum assured and the accrued bonuses becomes payable. If the child dies during lifetime of payor, the benefit according to under noted schedule 1 or if additional premium (Rs. 1.5 per 1000 sum assured) was made then the benefit according to under noted schedule 2 is payable to the payor.
Surrender/ Early Withdrawal	The policyholder has the option to surrender the policy after 2 years’ premium have been paid.
Conversion Option	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 both the lives 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.

Age nearest birthday of the Assured child at death	Deduct from the age of the older life
1 Year	10% of Sum Assured plus 10% Bonuses (if any)
2 Year	20% of Sum Assured plus 20% Bonuses (if any)
3 Year	30% of Sum Assured plus 30% Bonuses (if any)
4 Year	40% of Sum Assured plus 40% Bonuses (if any)
5 Year	50% of Sum Assured plus 50% Bonuses (if any)
6 Year	60% of Sum Assured plus 60% Bonuses (if any)
7 Year	70% of Sum Assured plus 70% Bonuses (if any)
8 Year	80% of Sum Assured plus 80% Bonuses (if any)
9 Year	90% of Sum Assured plus 90% Bonuses (if any)
10 Year or more	Full Sum Assured plus Full Bonuses (if any)

Age nearest birthday of the Assured child at death	Amount payable
1 Year	20% of Sum Assured plus 20% Bonuses (if any)
2 Year	40% of Sum Assured plus 40% Bonuses (if any)
3 Year	60% of Sum Assured plus 60% Bonuses (if any)
4 Year	80% of Sum Assured plus 80% Bonuses (if any)
5 Year	Full Sum Assured plus Full Bonuses (if any)

Age	Main Plan Premium Rate (Rs 1000 Sum Cover)	Add-ons
Age	Main Plan Premium Rate (Rs 1000 Sum Cover)	FIB (Rs 1000 Sum Cover) at 20 years term	ADB (Rs 1000 Sum Cover)
20	51.58	3.07	1.25
25	52.32	3.56	1.25
30	53.55	4.37	1.25
35	55.80	5.86	1.25
40	60.10	8.70	1.25
45	68.03	13.95	-

for rates specific to your age and term please contact our representative
policy fee will be applicable on premium
Rebate of 0.5 applicable on main plan premium for sum assured greater than equal to Rs. 300,000/-

Disclaimers

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.

Frequently Asked Questions

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 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.

Death claim is usually payable to the nominee/ assignee or the legal successor, as lhe case may be. However, if the deceased policyholder has not nominated/ assigned the policy or not made a will, the claim is payable lo the holder of a succession certificate or such evidence of title from a Court of Law

When the policy money becomes due for payment on the death of the policyholder, it can be paid only to that person who is legally entilled to give a valid and effective discharge to the Corporation. lf the policy bears nomination, the claim is settled in favour of lhe nominee. Similarly, if the policy is assigned, the assignee receives the claim amounl. lt should be noted that an assignment of a policy automatically cancels the existing nomination. Hence, when such a policy is reassigned in favour of the policyholder, it is necessary to make fresh nomination.

When a policyholder wants to change his address in State Lifeia%s records, notice of such charrge should be given lo the zonal office servicing his policy. Policy records can be transferred from the zonal office thal services the policy to any other zonal office nearest to the policyholde/s place of residence. The correct address facilitates better services and quicker settlemenl of claims.

When the premium is not paid within the days of grace provided after the due date, the policy lapses. The grace period in case of yearly, half-yearly and quarterly modes of paymenl is one month and in case of the monthly mode of payment, it is 15 days.

A lapsed policy may be revived during the lifetime of the life insured, bui within a period of 5 years from the due date of the first unpaid premium and b€fore the date of maturity. Pevival of a lapsed policy is considered either on nonmedical or medical basis depending upon the age ofthe life insured at the time of revival and the ium to be revived.

No alteration is permissible in the policy document - the evidence of contract, unless both the parties to the contracl agree. After the policy is issued, a policyholder in a number of cases finds the terms not suitable to him or her and desires to change them to suit his or her convenience. State Life also realizes thal insurance being a long-term contract, certain changes under given circumslances might necessitate an alteration of the contract. Keeping in view I l the basic principles of insurance and administrative convenience, State Life permits some allerations. As a rule, State Life will not permit alterations wilhin the 1st year from the commencement of the policy

The loss or destruction of a policy document does noi in any way absolve the Corporation of the liability of payment of policy monies when the claim arises. lf the policy is lost or destroyed, claim or sum insured will be paid to the claimant or policyholder after he or she furnishes an indemnity bond jointly with two sureties. Similarly, a policy can be surendered even if the original policy documenl is lost. However, for the purpose of loan or survival benefil one has to obtain a duplicate policy. The policy being a legal document, the issue of duplicate policy involves the normal procedures like issuing a newspaper advertisement.

A lapsed Life Insurance policy can be revived lvithin 5 years ftom the date of the llrst unpaid prem.um.

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 lhe policy has been in force for a minimum stipulated period.

ln case the policy is lost, policyholder should get a duplicate policy issued. State Life issues it after completion of certain formalilies and a nominal fee

A lapsed policy can be rcvived within five years from lhe dale of the first unpaid premium

The calculation of life insurance premiums is primarily based on four laclots iLy. age of the person to be insured insured, type of policy, sum insured and term of the policy.

Life insurance is mainly considered as a saving instrument rather than an inveslment avenue as it promotes compulsory savings besides protecting the family of the policyholder in the event of unforeseen happening. lt is the only saving inslrument, which covers the life risk. A loan can also be availed against the State Life insurance policies.

Planning for the financial consequences of a premature death is an essential part of every financial plan. Generally, the consequences are simply too large to ignore and cannot be totally covered with your own resources.

Life insurance is nothing but a contracl with an insurance company under which the insured (purchaser) pays a premium in exchange for coverage of specitied losses. Life ;nsurance protects your family against the risk of the premalure death of you (or your spouse). Life insurance planning should consider your family's s.lrort-term needs (for example, medical expenses) and long-term needs (for example, replacing your income).

ln the course of our life we are accosted by risk-that of failing health, financial losses, accidents and so on. lnsurance is a means by which life's uncedainties are addressed in financial terms. lt offers a monetary comp€nsation against those losses. lnsurance is considered more as a hedging mechanism rather than a true investmanl avenue. Life insurance, in particular is essentially acknowledged as a mechanism which eliminates risk substituting certainty for uncertainty primarily by lransferring risk from the insured to the insurer.

At present loans are granted up to 80% of the Surrender Value for policies, where the premium due is fully paid-up. The rate of profit or return charged is '10% per annum compounded semiannually.

Policyholders are eligible to take loan on their policies subject to certain rules and regulations.

Cunently State Life is charging 10% interest on policy loans. lnterest is payable half-yeady.

lf loan is not repaid during the term of the policy or eariy claim, the amount of loan plus profit or relurn, if any, will be deducted from the claim money and the balance amount will be paid to the person making the claim.

The very fundamental principle of spreading of the risk is aclually practiced by the insurance companies by reinsuflng the risks that they have insured.