State Life Ins.

PERSONAL PENSION SCHEME

A one-time investment that secures a guaranteed 25-year pension with continued lifetime income

Plan Overview

The Personal Pension Scheme is a conventional retirement solution that converts a single one-time contribution into a guaranteed pension for 25 years, followed by continued income for life. The plan is intended to deliver predictable retirement cash flows, disciplined conversion of savings into pension, and features designed to protect purchasing power over the long term.

Why Choose the Personal Pension Scheme

The Personal Pension Scheme meets the retirement needs of individuals who want a straightforward, dependable income stream in retirement:

• Guaranteed Pension Income: Secures a fixed pension for 25 years with continued payments thereafter for life.
• Single Contribution Convenience: Requires a one-time payment (minimum contribution) so there are no recurring premium obligations.
• Automatic Pension Increases: Built-in annual increases support long-term purchasing power.
• Access and Flexibility: Includes withdrawal options after the specified lock-in period to provide measured liquidity.
• Backed by State Life: The plan is backed by State Life’s institutional strength and long track record in delivering life and pension solutions.

Key Features and Benefits

1. Coverage and Eligibility

• Plan Type: Conventional personal pension arrangement.
• Entry Requirements: Available to individuals who meet the plan’s minimum contribution and age criteria as per product rules.
• Minimum Contribution: Minimum one-time contribution of PKR 50,000 (refer to the product brochure for exact minimums and any alternative contribution bands).

2. Benefit Structure

Guaranteed Pension (25 Years):

• The plan pays a fixed pension for a guaranteed period of 25 years.

Lifetime Continuation:

• After the guaranteed 25-year period, pension payments continue for the life of the annuitant, providing lasting retirement income.

Pension Increases:

• Pension payments are subject to automatic annual increases according to the plan’s terms, improving resilience to inflation over time.

Withdrawal Option:

• Policyholders may access partial or full withdrawals after the plan’s prescribed lock-in period (typically after six years), subject to policy terms and conditions.

3. Bonus / Profit Participation

• Where applicable, elements of the plan may participate in declared surplus or bonus additions according to State Life’s product design.

Any such participation will be governed by the policy terms and State Life’s declared practices.

4. Policy Flexibility

• Single Contribution: No recurring premium payments are required after the initial one-time contribution.
• Surrender / Partial Withdrawals: Limited surrender or withdrawal provisions are available after the lock-in period as set out in the policy conditions.
• Annuity Options at Conversion: On conversion to pension, different annuity payment frequencies and payout options may be offered as per product rules.
• Free-Look Period: Policyholders may cancel under the free-look provisions within the period specified in the policy documentation.

5. Optional Riders / Supplementary Benefits

• Depending on product availability and underwriting rules, policyholders may be offered optional add-ons or benefit enhancements at inception. Refer to State Life’s brochure for the list of permitted riders and eligibility requirements.

Who Should Consider This Plan

• Individuals seeking a simple, one-time route to guaranteed retirement income;
• Savers who prefer predictable, long-term pension payments rather than market-linked volatility;
• Professionals and retirees seeking pension income with automatic annual increases;
• Anyone who wants to convert a lump sum into a structured lifetime income backed by State Life.

State Life Plans and Features

Plan Features	Description
Plan Type	Annuity Plan
Minimum/Maximum Age at Entry	Min age of 18, no upper limit
Minimum/Maximum term	6 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	On death of the policyholder within 6 years pf the policy issue, a lumpsum payment will be payable.
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, on confirmation that the policy will be cashed on the option date, he can avail a maximum loan of 90% of the net surrender value of the policy and the loan will be adjusted against the cash option.
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 up to maximum of 10 years.

Age	Premium Rate (Rs 1000 Sum Cover)
20 or less	2,168
25	2,253
30	2,352
35	2,463
40	2,579
45	2,688
50	2,777
55	2,837

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 @ 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.

Personal Pension Scheme (Table-71)