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.
Whole Life Plan is a unique combination of protection and saving at a very economical premium. It offers insurance coverage till the age of 85 years. The sum assured and bonuses are payable at death before the age of 85 years or if the insured survives till maturity of policy. Under this plan the rates of bonuses are usually much higher than the other plans and they help in increasing not only protection but also the investment element of the policy substantially.
| Policyholder's age at issue | 18 |
| Selected Sum Assured | 3,500,000 |
| Annual Premium | 47,315 |
| Total Premium payable | 3,170,105 |
Mr. Ali is a student who is also a freelancer selling his skills of designing presentation and short vides for his client. He plans to save for a better future or any contingencies but can’t afford annual premium more than 50,000.
At the age of 43 years, he decided to perform hajj with his wife but he was short of money due to sudden hike in prices. He decided to avail loan facility from SLIC which is 80% of cash value accumulated till that point. He received 2.8 million as loan which he could easily return over a number of years in future.
By the grace of Allah, he was able to survive till age 85 years and he receives maturity amount of Rs. 42.2 million (almost 13 times of his premium paid). The amount can be used for meeting his daily needs as well as for the welfare of his children.
| Policyholder's age at issue | 10 |
| Selected Sum Assured | 2,000,000 |
| Annual Premium | 21,640 |
| Total Premium payable | 1,623,000 |
Mr. Zia works hard to make a better future for his family. He decides to get insurance for his 10-year-old son but can't pay high premiums. The plan helps him save money for his son at affordable rates and cover future expenses.
After 15 years, his son, now 25, gets a job and wants to pay the premiums himself. But he faces a problem getting to work because of the office location. So, he takes a loan from SLIC (80% of the policy's cash value) to buy a vehicle. He gets about 3.8 lakh from the loan, which is more than 18% of all the premiums he paid so far. He pays back the loan in 2 years.
When he turns 40, he has money troubles and can't pay the premium. So, he decides to give up the policy and gets 2.2 million, which is more than three times what he paid in premiums. This helps him with his money problems, and the policy ends.
|
Policyholder's age at issue |
30 |
| Selected Sum Assured | 10,000,000 |
| Annual Premium (with TIR for 25 years) | 262,300 |
| Total Premium payable | 12,563,500 |
Mr. Ahmed is a businessman who was searching for better investment option with his life protection. This plan would facilitate him as this offers high bonus rates as compared to other plans.
At the age of 50 years, he died due to sudden heart attack. He was the only source of income in the family, but now they would have a financial support from the death claim paid to the family.
They will receive Term Insurance Rider Benefit (TIR) along with main plan benefits. The total of approx. 38.5 million will be paid to the family which is 7 times of total amount paid in 20 years.
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 |
Whole life with surplus participation of 97.5% |
|
Minimum/Maximum Age at Entry |
10-65 Years |
|
Minimum/Maximum term |
85 – Age at entry |
|
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 at the age of 85 years. |
|
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. |
|
Age |
Main Plan Premium Rate (Rs 1000 Sum Cover) |
Add-ons |
|
|
FIB (Rs 1000 Sum Cover) at 20 years term |
ADB (Rs 1000 Sum Cover) |
||
|
10 |
11.27 |
- |
- |
|
15 |
12.86 |
- |
- |
|
20 |
14.83 |
3.07 |
1.25 |
|
25 |
17.37 |
3.56 |
1.25 |
|
30 |
20.51 |
4.37 |
1.25 |
|
35 |
24.33 |
5.86 |
1.25 |
|
40 |
29.26 |
8.70 |
1.25 |
|
45 |
35.72 |
13.95 |
– |
|
50 |
44.31 |
– |
– |
|
55 |
55.65 |
– |
– |
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.
