Stale Life Insurance

7/30/2019 Stale Life Insurance

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Brief History

The Life Insurance Business in Pakistan was nationalized during March 1972. Initially Life

Insurance business of 32 Insurance Companies was merged and placed under three Beema Unitsnamed A, B and C Beema Units. However, later these Beema Units were merged and

effective November 1, 1972 the Management of the Life Insurance Business was consolidatedand entrusted to the State Life Insurance Corporation of Pakistan.

State Life Insurance Corporation of Pakistan is headed by a Chairman and assisted by the

Executive Directors appointed by Federal Government. Up to July 2000 the Corporation was runby Board of Directors constituted under Life Insurance (Nationalization) Order 1972. In July

2000, under Insurance Ordinance 2000, the Federal Government reconstituted the Board of

Directors of State Life which runs the affair of this Corporation.

The basic structure of the Corporation consists of Four Regional Offices, Twenty-Six Zonal

Offices, a few Sub-Zonal Offices, 111 Sector Offices, and a network of 461 Area Offices across

the country for Individual Life Insurance; Four Zonal Offices and 6 Sector Offices with 20Sector Heads for Group & Pension are involved in the Marketing of Life Insurance Plans

policies and products offered by State Life and a Principal Office. The Zonal Offices deal

exclusively with Sales and Marketing. Underwriting of Life Insurance Policies and thePolicyholder's Services. Regional Offices, each headed by a Regional Chief, supervise business

activities of the Zones functioning under them. The Principal Office, based at Karachi, is

responsible for corporate activities such as investment, real estate, actuarial, overseas operations,etc.

Major Achievements

The major function of the State Life Insurance Corporation of Pakistan is to carry out LifeInsurance Business; however, it is also involved in the other related business activities such asinvestment of policyholders fund in Government securities, Stock market, Real Estate etc.

The major achievements of State Life are as under:

On the commencement of the operations, the Corporation took a very important step by

effecting reduction up to 33% in the premiums on the past and potential Life Policies for

the benefit of the Policyholders.

State Life is profitable organization and it paid Rs.3.473 billion as dividend to the

Government of Pakistan since its inception in 1972.

State Life has played very vital role in the economy by providing employment to the

people of the country as permanent employees and as part of its marketing force and byinvesting the huge funds in different sectors of the economy. The Investment Portfolio of

State Life as at 31.12.2011 stands at Rs.275.11 billions.

Investment portfolio also includes investment in Real Estate which stands at a book valueof Rs.2.538 billion as at 31.12.2011 whereas it fair value is around Rs.21.622 billion in

the same period.

The Paid up Capital increased from Rs.10 million in 1972 to Rs.1,100 million in 2011.


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The Premium income increased from Rs.0.317 billion in 1972 to 44.81 billion in 2011.

Similarly Investment income including rental income increased from Rs.0.81 billion in

1972 to 31.05 billion in 2011.

Total statutory fund of State Life stands at Rs.268.60 billion in 2011 as against Rs.1.494

billion in 1972

State Life is smoothly striving towards its objective of making life insurance available tolarge section of the society by extending it to common man. As at December, 2011 thetotal number of policies enforce under individual life were 3.774 million and number of

lives covered under group life insurance were 6.044 million.

Objectives

To run life insurance business on sound line.

To run life insurance business on sound line.

To provide more efficient service to the policyholders.

To maximize the return to the policyholders by economizing on expenses and increasing

the yield on investment.

To make life insurance a more effective means of mobilizing national savings.

To widen the area of operation of life insurance and making it available to as large a

section of the population as possible, extending it from the comparatively more affluentsections of society to the common man in towns and villages.

To use the policyholders fund in the wider interest of the community.

Mission

To remain the leading insurer in the country by extending the benefits of insurance to all sectionsof society and meeting our commitments to our policy holders and the nation.

Quality Policy

To ensure satisfaction of our valued policyholders in processing new business, providing aftersales service and optimizing return on Life Fund through a quality culture and to maintainourselves leading life insurer in Pakistan.


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Mr. Shahid Aziz Siddiqui Chairman / Director

Mr. Fazal Abbas Maken.

Additional Secretary Ministry of Commerce.Director

Mr. Husain Lawai. Director

Mr. Farooq Hadi. Director

Mr. Wazir Ali Khoja. Director

Mr. Nihal Anwar. Director

Mr. Tufail Shaikh. Director

Mr. Furqan A.Shaikh. Director

Mr. Akbar Ali Hussain Secretary Board

Management

Chairman Telephone Fax Email

Mr. Shahid Aziz Siddiqui 021-99202830

021-99202870

021-99202844 [email protected]

Executive Directors

Mr. Mukhtar Hussain 021-99202843 [email protected]

Mr. Nasim - ul -Haq 021-99202828

021-99202836 [email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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Ms. Talat Waseem 021-99202829 [email protected]

Secretary Board

Mr. Akbar Ali Hussain 021-99202818 021-99202869 [email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Individual Life Plans

1.Whole Life AssuranceIt is a unique combination of protection and savings at a very economical premium. Death at anytime before age 85 years terminates payment of premiums and the sum insured and attached

bonusesbecome payable. In the event the insured survives to the policy anniversary at age 85

years, the policy matures and the sum insured plus bonuses become payable. Under this plan the

rates of bonuses are usually much higher than the other plans and they help in increasing notonly protection but also the investment element of the policy substantially. Clickherefor

supplementary covers which can be attached with this plan.

This plan is best suited for youngsters who have at initial stages of their careers and cannotafford to pay high premiums. Individuals who anticipate requirement of a lump sum in far future

can also opt this plan. Clickherefor calculation of premium on your life under this plan.

2. ENDOWMENT ASSURANCE

Eligible ages:-

Minimum Age: 10 years

Maximum Age: 65 yearsAge (Maximum) on Maturity: Age 75 years.

Allowable Riders:Click herefor supplementary covers which can

be attached with this plan.

It's a safest and surest method of guaranteed cash provision either at

a specified time or at death (Allah forbid). Under these policies, the

sum insured plus bonuses are payable at the end of the specifiednumber of years or at death of the life insured if earlier. Premiums

are payable for the specified number of years or till death, if earlier.

The benefits under the plan can be further increased by attachingsupplementary covers.

This policy will acquire a surrender value after it has been inforce for at least two consecutive

years provided no premiums are in default. The surrender value will be quoted by State Life onrequest of the policyholder.

The plan serves the requirements of a family in various shapes by way of financial help at
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retirement, education of children or provision of capital for business.Click herefor calculation

of premium on your life under this plan.

3. Sadabahar Plan

Sadabahar is an anticipated endowment type with-profit plan that

provides lump sum benefit at certain stages during the premium-

paying term or on earlier death. In addition, this plan has a built-inAccidental Death Benefit (ADB) rider so that the policyholder gets

an additional sum assured in case of death due to an accident.

This plan is a safe instrument for cash provision at the time of need.With this plan, the policyholder can secure greater protection and

continued prosperity for the family at an affordable cost.

Admissible Ages and Terms This plan is available to all members ofthe general public, aged from 20 to 60 years nearest birthday. Both

males and females may purchase this plan. Terms offered under this

plan are 12,15,18, 21, 24, 27 and 30 years.

Survival Benefits

a. On completion of one-third of the policy term, 20% of basic sum assured can be taken by the policyholder. Another 20% of the sum assured can be

taken on completion of two-third of the policy term and the remaining 60% of basic sum assured plus accrued bonuses (if any) shall be payable at the end of the

policy term in the event of survival of the assured.

b. If the option to withdraw an installment of 20% sum assured is not exercised on the due date or within 6 months after the due date, a special bonus

will automatically be added to the policy at the end of 6 months. In this event:

1. On death of the assured while the policy is in force, the special bonus will be payable in addition to (1) Basic Sum Assured (2) Other Reversionary

Bonuses accrued on the policy and (3) the amount of any installment left with State Life.

2. On the maturity date, the special bonus will be payable together with all the installments of the sum assured remaining with State Life, in addition to

regular reversionary bonuses accrued on the policy.

3. So long as the policy remains in force, the policyholder may surrender the unclaimed installment of sum assured together with the related special

bonus. The aggregate cash surrender value of the two shall not be less than the amount of the said unclaimed installment.

4. 4.The reversionary bonuses as per usual practice will continue to be allotted each year on the basic sum assured (if in force) as and when Actuarial

Surplus is declared. However, the unclaimed installments of the sum assured and related special bonus will not participate in State Life's Actuarial

Surplus.
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Death Benefits

The full basic sum insured plus accrued bonuses are payable on death of insured any time while

the policy is in force. In addition, if death occurs as a result of an accident, additional amountequal to one basic sum assured, subject to maximum limit, will be paid. The usual maximum on

the ADB of Rs. 4 million will apply and premium will be calculated accordingly

Bonuses

This policy will participate in State Life's surplus. Rates of bonus applicable will be 25% higherthan those on anticipated endowment plan

4.Anticipated Endowment Assurance

This is a modified form of endowment assurance and is also called 'Three Payment Plan'.

Besides fulfilling the long-term financial needs, it also helps in meeting the short-term financialexigencies. As the name suggests, the plan offers three payments throughout term of the policy.

The plan offers survival benefits equal to 25% of sum insured on completion of 1/3rd and 2/3rd

term of the policy. If the policyholder does not withdraw the survival benefits, a very attractive

special reversionary bonus is available. Clickherefor special reversionary bonus currentlyavailable. On completion of term of the policy, the remaining 50% sum insured plus accrued

bonuses shall be payable. If the life insured expires during term of the policy, sum insured,

accruedbonuses,unclaimed survival benefits and special reversionary bonuses are payable. Click

herefor supplementary covers available with this plan.

The plan is suitable for the individuals who have long-term financial needs but also anticipaterequirement of money relatively earlier. Three Payment Plan helps fulfilling these short-termfinancial needs without terminating the actual contract. Clickherefor calculation of premium on

your life under this plan.

5. SHAD ABAD ASSURANCE

Eligible ages:-

Minimum Age: 20 yearsMaximum Age: 60 years

Age (Maximum) on Maturity: 70 years

Allowable Riders: Clickherefor supplementary covers which can

be attached with this plan.

On completion of term of policy, sum insured plus bonuses attached
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to the policy are payable. However, on death during the policy term, the death benefit consists of

double of sum insured with accrued bonuses. Incase of death due to accident, the death benefit

consists of four times the sum insured plusbonuses. The coverage can be further widened byattaching supplementary covers with the policy. Clickherefor details of the supplementary

covers.

This plan meets the requirements of those who appreciate the basic savings purpose ofendowment assurance but also like some additional cover to protect loved ones in case they die,

Allah forbid, before maturity. Clickherefor calculation of premium on your life under this plan.

6. JEEVAN SATHI ASSURANCE

Eligible ages:-

Minimum Age (Equivalent): 20 years

Maximum Age: 50 yearsEquivalent Age (Maximum) on Maturity: 70 years

This is a joint life plan and covers lives of two partners say husband

and wife simultaneously. Premiums are payable till the end of the

specified term or till death of either of the insured persons, if earlier.

The plan contains extensive benefits; an overview of which appearsas under:

On the death of the first life, the sum insured will be paid to thesurvivor. Further premiums under the policy will be waived, but the

insurance protection of the second life will continue. Also, thepolicy will continue to participate in profits of the Corporation. On

death of the second life, again the sum insured will be paid togetherwith the attachingbonuses. In this event the policy will terminate.

If the second life survives the term of the policy, he or she will be paid sum insured together withthe attached bonuses, even though the sum insured has been paid once, on the death of the first

life. If both the lives survive the term of the policy, the sum insured will be paid to them jointly,

only once, together with the attached bonuses. Different supplementary covers are also available

for increasing coverage under the policy.

Jeevan Sathi Plan is best suited for those married couples who want to enjoy insurance coveragefor a comparatively lesser premium. Moreover, housewives who are otherwise not insurable canalso enjoy the benefits of insurance policy through this plan.
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7. CHILD EDUCATION & MARRIAGE PLAN

Eligible ages:-

Minimum Age: 20 years

Maximum Age: 60 yearsAge (Maximum) on Maturity: 70 years

Child Education & Marriage Assurance is a plan for the protectionof child's future. It provides a lump sum benefit for the child at the

completion of the policy term. On completion of term of the policy,

full sum insured together with the accrued bonuses become payable

to the policyholder.

If the policyholder dies (Allah forbid) before completion of the term,

a family income benefit of Rs 240 per 1000 sum insured per annum

is paid to the child until the completion of policy term. Further,future premiums under the policy are waived and policy remains in

force with full sum insured and continues to participate in StateLife's surplus and receive bonuses. Upon the completion of policy

term, the child gets two options of either getting the proceeds in a lump sum or in five equal

installments.

1. Continue the policy in the same manner as earlier by switching the plan for the benefit ofanother child.

2.Get a refund of all the previous premiums paid till the death of the child or the cash valueof the policy, whichever is higher and terminate the contract.

3.Continue the policy without naming another child in which case the benefit of Refund ofPremium [as provided above under condition (b)] will not be available.

Child Education & Marriage Plan is suited for the parents who are conscious about the future of

their children. The term of the plan is such that the lump sum benefit becomes payable when thechild attains a predetermined age of 18, 21 or 25 years. These ages may be selected considering

the occasion at which children generally need financial assistance for higher education, marriage,

or setting up business. Depending upon your individual needs, the plan is available in two

separate versions of with and without built-in family income benefit. In addition to parent, this


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plan can also be affected by grandparents, uncles, aunts or any other person who is paying for the

maintenance of the child.

8. Child Protection Assurance

This is a joint life assurance and covers the lives of child and eitherof the parents. If the policyholder and the child both survive full

term of the policy, sum insured and accrued bonusesbecome

payable. If the policyholder dies before completion of term of the

policy the payment of premiums ceases and the child is paid anincome of Rs 100/- per thousand sum insured per annum till the

completion of the policy term. On completion of policy term, sum

insured inclusive of bonuses accrued till the death of the

policyholder is paid to the child.

If the child dies (Allah forbid) before maturity of the policy and

during lifetime of the policyholder, the death claim payable to thepolicyholder depends on the age at death of the child.

As the name suggests, the plan is suitable for parents who want tocater future financial needs of their children incase of death of the

breadwinner of the family.

9. Shehnai Policy:

Eligible ages:-

Minimum Age: 20 yearsMaximum Age: 60 yearsAge (Maximum) on Maturity: 70 years

Shehnai Policy is an innovative life insurance product. It provides a

solution to the problems of many concerned parents who want tosave now in order to provide for their children's higher education,

marriage and other expenses when the need arises. The term of the

plan is such that the lump sum benefit becomes payable as the child

attains the age of 25 years.

Shehnai Policy also caters from the ravages of inflation. This is done

by the option of automatic increase of 6% per annum in sum insuredand premium from third policy year onward. From the fourth policy

year onward, the policyholder is provided with a statement showing

the build up of cash value of the policy and sum insured for the year. The policy also participatesin the surplus of State Life and currently the rate of bonus is Rs 105 per thousand per annum of
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the adjusted opening cash value.

Maturity Benefit: The policy matures when the child attains age 25 years. At maturity the cashvalue of the policy is paid to the child. The cash value includes all the bonuses attached with the

policy.

Death Benefit: If the life insured dies during term of the policy, premium payments stop and thesum insured applicable to the policy year of death is deferred to be payable when the child

attains age of 25. At the time of death of the life insured, the said sum insured is added to the

'adjusted opening cash value' to be called the 'enhanced cash value' and participates in StateLife's surplus until it is paid out to the child when he or she attains the age of 25 years. The child

will have an option of either collecting the benefit in a lump sum or in five equal annual

installments.

10. Sunehri Policy

Sunehri Policy is an innovative life insurance product. It is flexible,

secure and meets the challenges of inflation quite economically.

Under a special feature of this plan, from third policy year onwards,sum insured under the policy and premium will increase by 6% per

annum without providing any evidence of insurability. From the

third policy year onward, the policyholder is provided with a

statement showing the build up of cash value of the policy and suminsured for the year. The policy also participates in the surplus of

State Life and currently the rate of bonus is Rs 105 per thousand per

annum of the adjusted opening cash value.

Death Benefit: If the life insured dies during first two years of policy

issue, then the initial basic sum insured will be payable. If the lifeinsured expires in third or later policy years, the death benefit

payable will be equal to sum insured applicable to the policy year of

death plus adjusted opening cash value.

Maturity Benefit: Policy matures on policy anniversary nearest to age 70 years of the life

insured. The maturity benefit equals to cash value of the policy at age 70.

The plan is suitable for individuals who have started their career and expect increase in their

income over a certain period of time say a year or two. The increase in premium and sum insuredhelps them to meet their increased insurance requirement with increase in incomes. Clickheretocalculate your premium for this plan.
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11. Optional Maturity Endowment

It is an endowment assurance with a built in option to mature early. The plan is available for

individuals aged 20 to 45 years. The policyholder has following options regarding maturity ofthis plan.

After the policy has been in force for 20 years or more, the policyholder gets an option to mature the

policy for a proportionately reduced sum insured.

After the policy has been in force for 20 years or more, the policyholder, depending on his or her

needs, can mature the policy in parts.

Let the policy mature at originally selected term. In this case the policyholder gets an additional

bonus.

The policy participates in bonuses declared by State Life from time to time. Please click here fordetails ofbonuses currently available for this plan. Coverage under the policy can also be

enhanced by attaching supplementary covers.

12. Nigehban Plan

This plan provides term insurance cover for a period ranging from 5to 10 years.

As the name suggests, this plan is meant to provide protectionduring the term of the policy only i.e. sum insured is payable on

death if it occurs during the term of insurance while the policy is in

force. The plan does not carry any survival benefits, maturity

benefits, surrender values, loan values etc. The policies will bewithout profits. Please

The plan is available in two versions namely, with single premium

and with annual premiums. Attaching certain supplementary coverscan widen the coverage under the plan

13. Muhafaz Plus Assurance

Muhafiz Plus provides a substantial sum of money on maturity or

earlier death (Allah forbid) of the life insured. On maturity, the

policyholder will receive sum insured plus bonuses attached with the

policy.

However if the life insured dies before completion of term of the

policy, basic sum insured plus attached bonuses will be paid to thedependants immediately. In case of death due to accident, the double

of the sum insured is paid. In addition, the dependents will also be

paid an income of Rs 240 per thousand sum insured per annum for a
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fixed period of 15 years. The first payment will fall due on the policy anniversary immediately

after the death of the life insured.

14. COMMITTEE POLICY TABLE 79

Eligible ages and Terms:-

Minimum Age : 20 years

Maximum Age : 50 yearsTerms Available: 3 and 5 years only.

This plan is a unique short term savings and protection scheme through which the policyholder

can get a lump sum amount of money at a specified time or on death (God Forbid), if earlier. Thepolicy would be a Pak Rupees policy and hence all premiums and claims would be payable in

Pak Rupees. This plan would not participate in the Actuarial Surplus of State Life. The premium

paying mode of this plan would be quarterly.

ELIGIBLE PROPOSER:

Only Standard Lives shall be eligible to own the plan.

MINIMUM AND MAXIMUM SUM ASSURED:

The minimum acceptable Sum Assured would be Rs. 75,000. The maximum Sum Assured underthe plan will be as follows:

Age at entry(Age nearest birthday)

Maximum Sum AssuredRs.

20 to 40 years 400,000

41 to 45 years 300,000

46 to 50 years 150,000

PREMIUM:

Premium is a level amount payable quarterly. It will be calculated as follows:Basic Quarterly Premium = Sum Assured

Term of Assurance x 4


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Supplementary Covers

State Life offers a number of supplementary covers to enhance coverage under different plans.

These supplementary covers can be attached with the main policy and are not availableexclusively. Please click below for the details of these supplementary covers:

Accidental Death & Indemnity Benefit (AIB)

Accidental Death Benefit (ADB)

Family Income Benefit (FIB)

Waiver of Premium (WP)

Special Waiver of Premium (SWP)

Term Insurance (TI)

Guaranteed Insurability (GI)

Refund of Premium Rider (RPR)

Hospital And Surgical Benefit (H and;S)

Accident Death & Indemnity Benefit (AIB)

This supplementary cover provides for payment of additional amount equal to the sum insuredunder the policy in the event of death by accidental means, or in the event of loss of two or more

limbs or loss of sight in both eyes. One-half of the sum insured will be paid for loss of one limb;one-third of sum insured in the event of loss of one eye and one-fourth of sum insured will be

paid for loss of thumb and index finger. Moreover, weekly indemnities are also available for

total and partial disability of the life insured as a result of the accident. If the life insuredbecomes permanent and total disable, an annuity of 10% of sum insured will be payable for a

maximum period of ten years.

AIB is suitable for office commuters and individuals who travel and use different modes oftransport. The rates of premium for this supplementary benefit range from Rs 4 to Rs10 per

thousand sum insured depending upon the occupational rating of proposer for standard lives

whose age should be between 18 to 55 years.AIB can be attached with following plans:

Whole Life Assurance

Endowment Assurance

Anticipated Endowment Assurance

Jeevan Sathi Assurance

Child Education & Marriage Assurance Shad Abad Assurance

Shehnai Policy

Child Protection Assurance (For adult life only)

Muhafiz Plus Assurance

Nigehban Plan

Optional Maturity Plan
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Accidental Death Benefit (ADB)

This supplementary cover will provide for payment of an additional amount equal to sum insuredin the event of death by an accident as defined in the contract. On payment of a modest premium,

a handsome accidental coverage is obtained through this supplementary cover. ADB is highlyrecommended for individuals who travel daily through road transport.

The cover is available to lives between 5 and 55 years of ages. Maximum term of this

supplementary benefit is not allowed to exceed the premium paying term of the basic policy, or

60 years of age of the life proposed whichever is earlier.

ADB can be attached with following plans:


Endowment Assurance

Anticipated Endowment Assurance Jeevan Sathi Assurance

Child Education & Marriage Assurance

Shehnai Policy

Child Protection Assurance


Nigehban Plan


Family Income Benefit (FIB)

This supplementary cover provides that incase of death of the life insured during term of thiscover, an annuity of 10% to 50% per annum of the basic sum insured will be payable till thecompletion of term of this cover. For instance, if a life insured has taken 25% FIB supplementary

cover for 20 years on his policy having sum insured of Rs 1,000,000. If the life insured expires

during term of FIB, say at the end of fourth year, an annual sum of Rs 250,000 will be payablefor rest of 16 years.

While the basic plan provides a lump sum, FIB provides a regular stream of income to thedependents and helps in meeting the day to day expenses. This supplementary cover is available

to lives between 18 and 55 years of ages. It can be attached with following plans:


Endowment Assurance




Shad Abad Assurance

Shehnai Policy
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Waiver of Premium (WP)

This supplementary cover provides for waiver of due premiums in the event of the life insured'sTotal and Permanent Disability caused by accident as defined in the contract. With the help of

WP, the life insured gets relieved of vagaries of paying premiums incase of his or her beingincapacitated as a result of accident. The rate of premium for standard risk will be Rs 0.50 to

1.00 per thousand of sum insured depending upon the age of life insured.

WP is available to lives between 18 and 55 years of ages. It can be attached with followingplans:

Whole Life Assurance Endowment Assurance







Special Waiver of Premium (SWP)

This supplementary cover will provide for waiver of premiums under the policy incase of the life

insured's Total and Permanent Disability due to accident or disease which renders him unable toengage in any occupation.

With the help of SWP, the life insured gets relieved of vagaries of paying premiums incase of his

or her being incapacitated as a result of accident or disease. SWP is available to lives between 20and 55 years of ages. SWP can be attached with following plans:


Endowment Assurance






Term Insurance (TI)
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In the event of death of the life insured during term of TI supplementary cover, the sum insuredwill be payable in addition to the benefits payable under the basic policy. Suppose, Mr A,

covered under a policy of Rs 1,000,000, also attaches TI supplementary cover with his policy.Incase of his death during term of TI, a sum equal to Rs 1,000,000 will be payable under this

supplementary cover. This will be in addition to the benefits payable under main policy.

This supplementary cover is an excellent opportunity for individuals who want to enhancecoverage of their policy substantially on payment of a meager amount of premium. TI is

available to lives between 18 and 55 years of age. TIR can be attached with following plans:


Endowment Assurance




Shad Abad Assurance

Shehnai Policy




Guaranteed Insurability (GI)

Under this supplementary cover, State Life gives the policyholder a right to purchase additionallife insurance upto specified maximum amounts on specified further dates at standard rates,without evidence of insurability being required at such later dates.

The specific further dates on which additional insurance can be taken are the policy anniversariesof the basic policy nearest the 25th, 28th, 31st, 34th, 37th and 40th birthdays of the life insured.

Thus the option dates for various issue ages

Issue Ages No of Option Dates Option Date Ages

10 - 24

25 - 27

28-30

31-3334-36

37

6

5

4

32

1

25, 28, 31, 34, 37, 40

28, 31, 34, 37, 40

31, 34, 37, 40

34, 37, 4037, 40

40

This supplementary cover is available only to standard lives between 10 and 37 years of ages and who

are not engaged in hazardous occupations. Only one GI will be issued on the life of any one person. GI is

available only at the time of issue of the basic policy and can not be attached to the policy after its
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issuance.

Individuals who foresee increase in their insurance needs in the near future can get benefit from this

supplementary cover. It saves them from providing any further evidence of insurability incase they

desire to enhance coverage under the policy. GI can be attached with following plans:


Endowment Assurance




Refund of Premium Rider (RPR)

RPR provides for refund of premiums paid under the policy in the event of death of the life

insured during term of the policy. It is an ideal form of enhancing the life cover under the policywith a modest increase in premium.

This supplementary cover is available to lives between 20 and 60 years of ages. The available

term ranges from 10 to 25 years. RPR can be attached with following plans:

Endowment Assurance


Shad Abad Assurance



Hospital and Surgical Benefits (H&S)

This supplementary cover provides benefits in case of hospitalization of the life insured, in StateLife's approved hospitals, as a result of sickness or accident. On payment of double amount ofpremium specified for H&S, the benefits and their limits will also be doubled.

H&S is available to lives between 18 and 50 years of ages. The available term ranges from 10 to25 years. RPR can be attached with following plans:


Endowment Assurance



Shad Abad Assurance


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Group Life & Pension Plans

1.Term Insurance SchemeProduct subscription / features

Group Term Insurance Plan provides life insurance coverage to the member of a group, such asthe employees of an employer. The amount of coverage of each member is determined with

reference to either his designation or salary or employment category or some other similar

variable.

What need does it fulfill?

This plan provides insurance protection to the members of a group at a very affordable minimum

possible cost, 24 hours coverage around the world.

By promoting a sense of financial security amongst the employees it contributes to improving the

working environment for the employer resulting in higher productivity.

In most cases the employer is legally obliged to provide insurance cover to his employees. This

plan helps the employer to fulfill this requirement.

Premiums are tax-deductible for the employer. Total premium under group term insurance islower as compared to sum of premium of all policies if issued individually to each life, due to

savings in expenses.

The Benefits Of Plan

On death of any insured member the sum assured on his life is paid for the benefit of hissurviving family. This benefit is payable regardless of the total number of the deaths even if the

total amount paid out exceeds the total premiums received under the policy.

However, if in any three-year period State Life earns a net profit on any policy, then some share

in the profit is passed on to the policyholder, depending upon the total number of members in the

scheme. This share can go up to 90% in case of large sized schemes.

What riders can be added?

1.PTD (Accident) Rider

Under this rider the insured member is entitled to payment of the sum assured in case of anyaccident causing permanent and total disability, which includes loss of two limbs or two eyes or

loss of hearing in both ears or severe facial disfigurement. If the disability is permanent but not


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total then some percentage of the sum assured is payable depending upon the severity of the

disability. In this regards the same schedule of disabilities is applicable as is prescribed under the

labor laws. In case of a temporary accidental disability causing absence from work a fortnightlybenefit calculated at the rate of Rs. 3,000 per month or the monthly salary whichever is less is

payable.

2.A.D.B. Rider

Under this rider the death benefit of an insured member is doubled if the death was caused by anaccident.

3.Natural Disability Rider

Under this Rider if an, insured member is rendered incapable of pursuing any occupation or

vocation for gainful employment due to permanent disability caused by disease or sickness thenhe is entitled to the sum assured as benefit.

4 Critical Illness Rider

If an employee contracts any of the following critical illnesses while insured under this rider then

he is entitled to the rider sum assured as benefit. Covered critical illnesses include.

Heart attack

Coronary Artery by-pass surgery

Stroke Cancer

Kidney Failure

Major organ transplant such as heart, kidney or liver

The insured member must survive for at least 31 days after contracting the illness to become

eligible for he benefit. Some restrictions apply during the first two years of coverage.

Suitable For

The plan is suitable for employers who desire to provide financial security to their employees by

means of insurance coverage or for members of a professional body or association or somewelfare association or a social club who desire to avail insurance protection on a collective basis.

2.Provident Fund Insurance Scheme


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Group Provident Fund Insurance Scheme provides life insurance coverage to the members of the

provident fund scheme of an employer. The amount of coverage of each member depends upon

his age and the amount of his provident fund balance at any time.

What Need Does It Fulfill?

Young employees normally have short service to their credit and consequently their Provident

Fund balance is also quite meager. In case of unfortunate death of such a person the provident

fund amount is not adequate for meeting the financial needs of the family such as schooling of

the children, their marriage expenses and housing accommodation. Group Provident FundInsurance Scheme is specially designed to meet such an eventually since the benefits under the

scheme are on a sliding scale.

The benefits under a typical scheme are as follows:-

Age Bracket Benefit

18 30 4 times the fund balance.



51 55 1 time the fund balance.

56 59 1/2 time the fund balance.

The younger employees enjoy a higher multiple of the fund balance since the average amount of

their fund balance is smaller but their requirement for insurance is greater.

Benefits of Group Provident Fund Insurance Scheme

On the death of any member of the provident fund scheme his family is paid a lump sum amount

equal to the amount of his fund balance on the date of his death multiplied by a factor dependingupon the age of the employee at death. The factors applicable for a typical scheme are already

given above however the employer in a particular case may adjust these factors to suit his own

special requirements.

If the scheme has 200 or more members then at the end of three years the fund is also entitled to

some share in the profits depending upon the size of the scheme.



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Any rider which can be added with group term insurance plan can also be added with this plan

such ADB, PTD (Accident), NDB or Critical Illness Cover.

Suitable for..

The plan is suitable for any employer who maintains a provident fund scheme for his employeesand who appreciates the benefits of providing the maximum possible insurance coverage to his

employees. Some employers may appreciate the benefits of group insurance but they may avoid

higher coverage under their group term insurance policy since the cost of this coverage would

either have to be borne by them or if they recover the cost from the salaries of their employeesthen some of the employees might object to it.

For such employers this scheme is very suitable since it does not require any explicit premium

contribution from the employer or the employees, instead the cost of the scheme is recoveredfrom the annual investment return earned by the provident fund. In a typical case, if a fund is

earning a return of around 12% per annum, then with the introduction of this scheme, this return

may reduce to about 11 or 11.5 % per annum. This decrease is so small that most of theemployees do not even feel it but by virtue of it their families could enjoy a handsome insurance

protection against any misfortune striking the breadwinner of the family.

3.House Building & perquisites Insurance SchemeUnder this plan each member of the group is insured for the total amount of loan outstanding

against him inclusive of accumulated interest. The amount of Insurance is the actual amount ofloan outstanding on the date of death whereas the premium is charged on the average loan

outstanding over the whole policy year.

What need does it fulfill ?

It provides financial security to employers and financial institutions against the risk of untimely

death of any of their indebted employee or client. Very often the family of the deceased person isnot is a position to repay the loans taken out by him, especially if the deceased person was the

sole breadwinning member of the family. In such a case the insurance coverage provides an

assurance to the creditor that he would be able to recover his capital without causing hardship tothe distressed family.

The creditor is also protected from the headache of constantly monitoring cases of delayed

repayments of loan in hardship cases caused by unforeseen death of a bread winning familymember. The premium due under this policy may be recovered by the creditor from the

borrowers along with the loan repayment installments.

Benefits Of Group House Building & perquisites Insurance


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In case of death of an insured member of the scheme the total amount of the loan outstanding

against him including accumulated interest is payable to the policyholder. In case State Life

earns a profit on any policy during a 3-year period, the policyholder is also entitled to some sharein the profits depending upon the size of the group.

What riders can be addes ?

PTD (Accident) and NDB rider may be attached with this plan. These riders provide insurance

cover against permanent disability due to accidental and natural causes rendering the insured

member unable to earn a livelihood for himself and his family.

In such a case the attaching riders can facilitate the creditor in recovering the outstanding amount

of loan.

Suitable For

This plan is suitable for employers who have a scheme for providing loans to their employees forhouse building, purchases of conveyance or any other goods of household use. It is also suitable

for banks who are in the business of granting loans to their clients for purchase of house or

conveyance or for some business venture. Similarly leasing companies and other financialinstitutions with similar facility may find this plan quite attractive.

4.Pay Continuation Scheme1. Manpower is still considered as one of the most important elements of productions inspite of the dramatic growth of microchip based automation in all walks of life,

especially in commerce and industry. The overall efficiency of an organization therefore depends upon the quality of the manpower of its employees. The more devoted,

hardworking and loyal the employees the higher the reward to the employer in the form of greater efficiency and profitability. Quality manpower can be attracted by offering a

good employee benefits package based on ensuring security and peace of mind of the workforce so that a greater commitment is obtained from them. This is why theenlightened employer pays particular attention to the welfare and well being of their workforce through various employee benefits scheme.

2. One of the functions of such schemes is to provide protection to the employee's dependants in the event of his death. Progressive employers do

provide group insurance which pays a lump sum to the dependants. This however d oes not last long. What is required in addition is a regular monthly income for a

period of time. To meet this Requirement State Life proudly presents a plan, which offers invaluable protection to the employee's family during his working life. The

family's regular monthly income is protected for 15 years or until age 60 witchever is earlier. In this way coverage is provided for pay upon the death of the

employee. This is illustrated by the following example:

Supposing the pay of an employee is Rs 2000/- per month. If death takes place at age 47

then the benefits payable will be Rs 2000/- per month up to age 60, i-e., for a period of 13

years. Total amount payable Rs.3,12,000/-

If death takes place at age 35 then the benefit payable will be 2,000/- per month for a

period of 15 years. Total amount payable Rs. 3,60,000/-

Annual premiums will be calculated on the basis of the employee's pay and his age and will be

payable at the beginning of each scheme year. If this policy qualify for profit commission it will

be payable in accordance with the rules at the end of 3 years.


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"Cover without medical evidence" is allowed on the same basis as group term with the monthly

benefits being converted into a lump sum equivalent. The total of the benefits so arrived at

should, however not exceed the maximum allowable under the policy.

Group Endowment Insurance Scheme

Group Endowment Insurance Scheme

Group Endowment Scheme is a unique saving and protection scheme through which theemployees of an employer can enjoy insurance protection throughout their service and also get a

lump sum cash amount upon their retirement if they survive upto retirement.

What Need Does It Fulfill?

n Pakistan most employers do not operate any pension scheme for their employees althoughsome employers may have a provident fund scheme or a gratuity scheme. The expected benefits

at retirement under a typical provident fund scheme and gratuity scheme combined are woefullyinadequate for a retiring employee for maintaining his standard of living after retirement unless

he supplements these benefits with his own personal savings. Keeping this in view someemployers may wish to encourage a habit of saving amongst their employees for their own

welfare. Group Endowment Insurance Scheme can be a means of introducing a compulsory

saving scheme for the employees under the sponsorship of the employer. Participation in thescheme is usually compulsory. However, if participation in the scheme is voluntary, at least 75%

of eligible employees must participate.

Benefits Of Group Endowment Insurance Scheme

Under this scheme each employee is provided insurance protection for an amount which may beflat or depends upon the designation or salary of the employee. The amount of insurance is

payable on maturity or death if it occurs earlier. In most cases the term of the endowment

insurance for each employee is determined in such a way that the policy matures at or near hisretirement date.

This enables the maturity proceeds to coincide with retirement and supplement the retirement

benefits

1. Profit Participation

The endowment insurance is issued on a with profits basis. The same bonus rate are applicable asfor the corresponding individual endowment insurance policies.

2. Premium Rates


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The same premium rates are applicable as for individual endowment policy but with the addedattraction that in group form some volume discounts are also applicable depending upon the size

of the annual premium.

3. Surrender Value

The policy acquires Surrender Value in respect of a member after insurance cover has been

inforce for at least two years on that member and no premiums are in default.

4. Loan Facility

Under this scheme if the member needs immediate liquidity and a policy has acquired SurrenderValue in respect of member, he/she can avail a maximum loan of 80% of the net surrender value

of the policy.

5. Continuation Priviliges

If an employee leaves the service of the employer, he can surrender his policy against the NetSurrender Value. He is also provided with the option of continuing his endowment insurance

coverage in an individual capacity without any evidence of good health, for the same sum

assured and term as he was enjoying during his service. The premium rates applicable to the

policy are the same as are generally applicable to the same class of business in and individualcapacity.


The ADB, PTD (Accident) and NDB can be added to this policy if desired.

Suitable For..

This plan is suitable for employers who desire to inculcate a habit of saving amongst theiremployees in addition to providing them insurance against premature death.

Group Pension Scheme

Foreword we, at State life, have become increasingly aware of the predicament of progressiveemployers wanting to better the lifestyle of their employees by providing financial security and

job satisfaction, but not being able to do so, due to lack of availability of avenues and

opportunities. This booklet is a guide to the State Life's Pension Scheme that enables an

employer to provide substantial benefits to employees and ensure a higher state of well being forthem. It explains the institution, administration and benefits of the pension scheme and with the

help of expert professionals in our Pensions Division, we can assist you in availing it, in your


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own and your employees' interest. Our representatives will only be too pleased to be of any

service to you.

1. Introduction

Once the working life of an individual is over, or he has retired, what will he live on? This is aquestion which every individual faces during his working life and is of equal importance to a

concerned employer. Personal savings, Provident Fund and Gratuity are the normal assets he

acquires. If not spent prudently, these aasets can fritter away in a short time.

State life's Pension Scheme is the only source which provides a steady monthly income, when

other sources of income stop.

This booklet explains step-by-step the nature of the Pension Scheme, how it operates and whatare its benefits to the employer as well as to the employees.

2. What is Pension Scheme

Basically it is a saving, or call it a contribution, which is collected during the working life of anindividual and invested profitably. After retirement the individual is entitled to a steady monthly

income from a fund built up from the earlier savings.

In a sense, it is a reward to the employee, granted today, while money is to be received on

retirement.

3. Why a Pension Scheme

We advise a pension scheme due to following benefits to the Employees:

After retirement when the monthly pay-cheque stops, the individual starts receiving a regular

monthly income in the form of a pension.

While contribution to the scheme, the individual gets a tax concession.

The individual, after retirement, need not fear of a drastic reduction in his standard of living.

All pensions are completely tax-free.

Retirement comes as planned and not abruptly as a shock.

4. Benefits to the Employer

Contributions to the Pension Scheme by the employer are treated as business expenses and

deductible in full.

The knowledge that at the end of the career, the employee will get a regular pension, helps to

build up his job loyalty and the adherence to the job, to the employer's satisfaction.

Employer does not have to find money to compensate an employee when he ceases to work.


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Shows that the Management cares for their staff and is concerned about their welfare.

Attracts new employees.

Retirement of personnel is planned in advance, removing uncertainty both for the employer and

the employee.

Promotion channels in the management hierarchy are unclogged.

5. Comparison with Provident Fund and Gratuity.

1. Provident Fund

This is like a savings bank. The contribution of the employer as well as the employee along with

interest accumulated over the years, is handed over to the employee on his retirement.However, in case an employee wishes to leave before retirement is due, employer's contribution

may not have to be paid; or only part payment may be made.

2. Gratuity

Gratuity is exclusively the employer's contribution for the benefit of the employee. From half toa full month's salary is credited for every year of service. Reserves are set aside in the balance

sheet but they do not attract tax concession, unless it is a funded scheme. The security of the

employee to receive the gratuity is dependent on the continued existence of the employer and hisprofits, except in case of a funded scheme.

3. Pension Scheme

In comparison with the aforementioned two retirement benefits the Pension Scheme has distinct

advantages:

Payments through Pension Scheme are guaranteed for life.

A pensioner can look forward to his retirement with confidence and security.

Pension Scheme is the only method through which regular income accrues to an employee after

retirement.

The payment of the pension is not dependent upon the fortune of the employer.

Lump sum comparable to those received from Gratuity or Provident Fund, can still be drawn by

commutation or the pension while maintaining a steady monthly income.

6. How State Life can help you with the Pension Scheme?

State Life maintains a full-fledged pension Department capable of handling each and everyscheme in the most competent and professional manner. It has actuaries, lawyers and other

experts, besides offering a unified administrative, technical and investment service. An employer


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can relieve himself of the tedious and cumbersome work by using the professional service

offered by State Life, the major ones being:

1. Designing a Pension Scheme according to am employer's exact requirements, in addition todetermining the rate of contribution etc.

2. Preparation of explanatory documents, if required, for consideration by employees.

3.Assisting the employer's legal advisers with the preparation of Trust deed and Rules.4.Providing reasonable assistance in negotiations with the Central Board of revenue for approvalof the scheme.

5. Maintenance of Individual records of members of the scheme, their contributions, the

employer's contribution, pension accrued etc.6. Facilities for payment of pensions, when due

Security:

All policies issued by State Life are guaranteed and enjoy full financial security, backed by the

Government under Article 35 of Life Insurance Nationalisation Order 1972.

7. Payment of Pension

The pension will be payable by monthly instalments; commencing from the retirement ofmember and ceases upon his death.

8. Guaranteed Payments

By incorporating a Guaranteed Pension period, payment can be ensured for a defined period say5 to 10 years, whether or not a pensioner is alive after retirement, if, however, a pensioner

survives the guaranteed period, pension will continue throughout his lifetime.

9. Supplementary Benefits

They may be termed as supplementary, but are indeed those invaluable finishing touches thatmake the picture complete. Employees would not feel secure unless their families were provided

for in the event of their untimely demise. At a little extra cost employees may be given peace of

mind by providing these benefits, some of which are listed below:-

Widow's Pension (upon death in service)

The pension will be payable to the wife of a member if he dies while in service. Normally, a

widow's pension is one half of the member's pension entitlement.

WIDOW'S PENSION (upon death after retirement)


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The pension is payable to the wife if the member dies after retirement. In this case also a

widow's pension is one half of the pension the member was receiving. The widow's pension, in

either case would be payable for life but would cease in the event of remarriage.

Orphan's Benefits

The inclusion of orphan's benefits in Pension Scheme along with the widow's pension, gives the

scheme a level of completeness. A normal scale of orphan's benefit is 33% of the widow's

pension per child, payable upon the child's attainment of age 18 or earlier marriage. Limit is

imposed on the number of children who can claim such benefits.

10. Retirement Aspects

Pension will be payable to a member according to a predetermined scale on the normal

retirement date fixed by the employer.

11. EarlyRetirement

A member who retires before his normal retirement date on account of becoming incapacitated,

or for any other reason, may be granted a reduced immediate pension to commence on the dayfollowing the actual date of retirement.

12. Late Retirement

A member who remains in employer's service after the normal retirement date will receive anappropriately increased pension on retirement.

13. Withdrawl Benefits

If a member withdraws from the service of the employer before the normal retirement date due toany reason and without any entitlement to early retirement pension, his future contribution, or

contribution made on his behalf, will cease.

Benefits to be paid on withdrawal will depend upon the "withdrawal from service" rules of the

scheme. In such a case one of the following procedures may be adopted:

Refund of contribution

If a member withdraws from the contributory scheme a refund is made of all the contributions

made by the employee.

Defrred Paid-Up Pension


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A withdrawing member may be allowed a deferred paid-up pension of the amount accrued to

his account on the date of withdrawal. The reduced pension will commence on his normal

retirement date.

Private EducationEDUCATION PLAN

Moving towards more educated Pakistan

Introduction:

It is the dream of every father and mother to educate their children. They sacrifice their needsand work hard to turn their dreams into reality. However, the human life is uncertain. A sudden

death of the breadwinner could end all the hopes.

State Life has designed an innovative plan to address this area. You know that State Life is the

largest Life Insurance Organization in Pakistan with offices throughout the country including

remote areas. There are around 6 million people insured with State Life. We have the experience

of more than 30 years in Life Insurance Business. Besides the immense financial strength, all thepolicies of State Life are guaranteed by Government of Pakistan.

Being the leading Insurer in the country, State Life aims to play its role in development ofeducation. State Life would run this plan on non-profit basis. If the plan generates any profit to

State Life, whole profit would be returned to the school which may be utilized for the welfare of

students such as scholarship. Having such plan would also give competitive advantage to theschool.

This plan intends to ensure continuation of education of school children in case their fathers or

guardians die. The plan would cover the annual fee of the schools and cost of books anduniforms.

Schools to be Covered

Registered Private Schools with at least 300 students would be eligible to be covered under thisscheme.

The G&P Division should approach the schools with good standing based on their general

reputation, location, fee structure etc. This point should be taken as general advice and not as amatter of strict condition.


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Eligible Persons

The fathers (with age below 60) of the students studying in class level Nursery to 10 would becovered under the scheme on compulsory basis. In case the father is not alive, guardian may be

covered provided his age is not more than 60 years.

Benefit

In case the father or guardian dies while the student is studying in school, State Life would paythe fee of the student to the school. An additional annual grant equal to school annual fee would

also be paid to cover the cost of books and uniforms. This payment would be made by State Life

each year till the student completes education in class 10.

In case the annual fee of the school increases by more than 5% in any year, the benefit paymentby State Life would take it as 5%

Cost

The cost of the scheme for first year would be 6.00% of total annual fee of the school. The costwould be paid by the school annually in advance.State Life would review the cost each year.

Medical Requirements

There would be no medical requirements if the annual fee is equal to or less than the Class Level

Wise Limits given below

Class LevelMaximum Annual Fee upto which No Medical

would be Required (Rs.)

Nursery, KG

1 & KG50,000

Class 1-5 75,000

Class 6-10 100,000


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In case the annual fee is higher than the above limits, State Life would determine if any medical

is required.

Data Requirement

Once the policy is issued to the school, the data of fathers/guardians such as name, date of birth,occupation, NIC # would be provided by the school to State Life within a period of 3 months.

Claim Settlement

The school would lodge the claim as soon as possible on a prescribed form along with necessarysupporting documents such as death certificate, copy of NIC. State Life would start paying thefee within the shortest possible time, after necessary verification.

Termination of the Coverage

The insurance coverage would terminate on the earliest of following events:

a. Termination of the Contract between the School and State Life,

b. Father/Guardian attains the age of 60,

c. Student leaves the school,d. Wind up of the School,

Profit Sharing

State Life would evaluate the scheme after every three years and if the scheme has generated anyprofit to State Life, 100% of the profit would be returned to the School. The profit of the Schemewould be worked out as follows:

Total Cost Paid or Payable

LessState Life's Management Expenses & Contingency Margin

Less

Claims Paid,

LessClaims in-process,

Less

Present Value of future payments on claims incurred & reportedLess

Provision for claims incurred but not reported.

State Life's Management Expenses & Contingency Margin as percentage of cost would depend

on average number of students remained covered during the profit commission period, asfollows:


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Average Number of

Student per year

State Life's Management Expenses &

Contingency Margin (as % of Cost)

300-600 25%

601-1,000 20%

1,001-3,000 15%

More than 3,000 10%

Closing Remarks

This is a brief of the Scheme which is sufficient at proposal stage. If a proposal is accepted, a

detailed contract would be executed between the School and State Life, containing all the details

of the scheme.

Stale Life Insurance

Documents

Transcript of Stale Life Insurance