MUZAMMIL QADEER

QURESHI
PHS TRAINEE OFFICER
PAY ROLL NO: 21705-0
 STATE LIFE INSURANCE
CORPORATION OF PAKISTAN
 INTRODUCTION:

 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 Units named
“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 consolidated and 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 run by Board of Directors constituted
under Life Insurance (Nationalization) Order 1972.
 INTRODUCTION:

 The basic structure of the Corporation consists of Seven

Regional Offices, Thirty Three Zonal Offices, a few Sub-Zonal
Offices, 190 Sector Offices, and a network of 1102 Area Offices
across the country for Individual Life Insurance; Four Zonal
Offices and 6 Sector Offices with 20 Sector 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 the Policyholders
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.
 INSURANCE PLANS AND THEIR FEATURES

PRODUCTS OF STATELIFE:
 There are different plans designed according to the
need of clients. Their details are given below:

 Endowment (Specific term. Surrender, Mature or death.)

 Anticipated (3 payment plan).
 Whole life (Maturity at 85 years).
 Joint life.
 TABLE 01
Whole Life Assurance

 Whole life Assurance plan is a Unique combination of protection and

savings which can be purchased at very economical premium.

 Features:
 Death at any time before age 85 years terminates payments of
premium and the sum assured plus bonuses, if any, become payable
 In the event the insured survives to the policy anniversary nearest
age 85 years the policy matures and the sum assured plus bonuses
becomes payable.
 Table 03
Endowment assurance

 The most selling product of State life is table 03

Endowment Assurance.
 Endowment assurance is the safest and surest
method of guaranteed cash provision either at a
specified term or death.
 It serves the requirements of the family in various
shapes by way of financial help at retirement,
education of children or capital for business.
 Table 03: Contd.

 Features:
 Under these policies the Sum Assured plus Bonuses is payable
at the end of specified number of years or Death of the assured
if earlier.
 Premiums are payable for the specified number of years or till
death, if earlier.
Eligible Ages:
 Minimum Age: 10 Years
 Maximum Age: 65Years
 Age Maximum on Maturity: 75 Years.
 Table 03: Contd.

 Special Features :

1. Benefits under F.I.B rider have been increasing at every

actuarial valuation.
2. Special Terminal Bonus is payable on Maturity, for each year
in excess of 10 years.
3. F..I.B Rider upto 25% entails no extra medical requirements.
4. F.I.B. Rider upto 50% can be added at the maximum.
 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
financial exigencies.
 Table:05
Anticipated endowment assurance
 Features:
1. The full sum assured plus bonuses are payable at death
of the assured anytime while the policy is enforce.
2. On expiry of 1/3rd of policy term,25% of the sum assured
can be taken by the policyholder.
3. Another 25% of the sum assured can be taken on expiry
of 2/3rd of the policy term and the remaining 50% sum
assured plus bonuses shall be payable at the end of the
policy term in the event of survival of the assured.
4. If the option to withdraw an installment of 25% is not
exercised on the due date or within 6 months afterwards,
a special bonus will automatically added to the policy. In
this event:
 Table:05
Anticipated endowment assurance

a) On the death of assured while policy is enforce, the special

bonus will be payable in addition to:
1. Basic Sum assured
2. Revisionary bonus accrued on the policy.
3. The amount of any Installment left with State Life.

b) On maturity date the special bonus will be payable together with

all installments of the sum assured remaining with state life in
addition to regular revisionary bonuses accrued on the policy.
 Table:05
Anticipated endowment assurance

THE TERM FOR THIS PLAN IS 18,21,24,27 AND 30

YEARS. THE FULL SUM ASSURED PLUS ACCRUED
B O N U S E S , I F A N Y, A R E PAYA B L E AT D E AT H O F
ASSURED ANY TIME WHILE THE POLICY IS
ENFORCE.

THERE IS AN OPTION IN THIS PLAN FOR THE

P O L I C Y H O L D E R T O AVA I L 2 5 % O F S U M
A S S U R E D A F T E R C O M P L E T I O N O F 1 / 3 RD T E R M
O F P O L I C Y S AY 7 Y E A R S I N C A S E O F 2 1 Y E A R S
OF TERM.
 Table 07:
Child Protection Policy

THIS IS A JOINT LIFE ASSURANCE AND

COVERS THE LIVES OF CHILD AND EITHER
OF THE PARENTS.
IF FATHER IS NOT ALIVE OR HIS LIFE IS
NOT INSURABLE, THE MOTHER WILL BE
ALLOWED TO BE THE PAYOR. NO OTHER
RELATIVES ETC WILL BE ALLOWED TO BE A
PAYOR.
 Table 07:
Child protection policy
FEATURES:
1. If the Payor and child both survive the term of the policy, the sum assured
along with accrued bonuses becomes payable.
2. If the Payor dies before the maturity of the policy, during lifetime of child,
the payment of premium ceases and the following benefits become
payable:

a) An income of Rs.100/-per thousand sum assured per anum till the

expiry of the policy term.
b) The sum assured on the expiry of policy term inclusive of bonuses (if
any) accrued till the death of the Payor.
Table 07: contd.
IF THE CHILD DIES DURING LIFETIME OF
T H E PAY O R , B E F O R E T H E M AT U R I T Y O F
T H E P O L I C Y, T H E PAY M E N T A C C O R D I N G
TO THE UNDER-NOTED SCHEDULE
B E C O M E S D U E T O T H E PAY O R :

Age nearest Birthday of the Assured child at Death

1. Year …………… 10% of S.A plus 10% Bonuses. (if any)
2. Year …………… 20% of S.A plus 20% Bonuses. (if any)
3. Year …………… 30% of S.A plus 30% Bonuses. (if any)
4. Year …………… 40% of S.A plus 40% Bonuses. (if any)
5. Year …………… 50% of S.A plus 50% Bonuses. (if any)
6. Year …………… 60% of S.A plus 60% Bonuses. (if any)
7. Year …………… 70% of S.A plus 70% Bonuses. (if any)
8. Year …………… 80% of S.A plus 80% Bonuses. (if any)
9. Year …………… 90% of S.A plus 90% Bonuses. (if any)
10. Year …………… Full Sum Assured plus full Bonuses.
 Eligible Age:

CHILD: Minimum Maximum

6 MONTHS i.e. one 15 Years Nearest
year Nearest Birthday. Birthday.

Payor : 20 Years Nearest 50 Years Nearest

Birthday Birthday.
 Table 19:
Jeevan sathi plan with reports
 This plans insures two lives at a time, sum
assured is given to the survivor, and the rest
of the premiums are waived off and the
second life protection carries on. As well the
policies will continue to receive the bonuses
till the maturity.

 The benefits for the plan :

 Survivor gains the benefit
 After the second assured death the benefit
is paid to nominee
 If the policy is matured the survivor gains
full credit
 If both assured survives the bonus will be
paid jointly to them one time only at the
maturity
 Table 19

Uniform Seniority Table

0-1 year nil
2 to 3 1 year
4 to 6 2 years
7-9 3 years
10-13 4 years
14-17 5 years
18-24 6 years
25-33 7 years
 Table 36 : Shadabad plan

 This plan serves for the savings purpose of endowment

of insurance , bonuses and yearly bonuses that are
payable. Additional covers for any risk in life that can
occur due the hazardous can be added to the insurance
for the loved ones.

 Benefits :
 1000 basic endowment with profits sum insured.
With the additional usual bonuses and terminal
bonuses.
 On death total of death benefit would RS:2000
 In case of death due to accident accumulated total of
RS:4000 is paid
 Table :36

 RIDERS that can be Added:

 FIB (family income benefit)

 TIR ( term insurance rider)

 SWP ( special waiver of premium

 AIB (accident indemnity benefits)

 H&S ( hospitalization and surgery )

 RPR ( refund of premium rider)

 Table 75 :
Child Education and Marriage Plan

 This plans helps to secure the future of the children. It provides benefit for
specified terms. Accommodates the child with a lump sum benefit at the
maturity of the policy at the decided date in the contract that is 18, 21or 25
years. This can be taken in account for predicting the future of child that when
this amount can come in use for the child as for higher education , marriage or
setting up business.
 Features:
 If the policyholder dies before the expiry of the term:

 A regular income benefits of Rs. 240 per 1000 sum insured per anum is
paid to the child until the completion of the policy term.
 Future premiums are waived.
 Policy remains in force with full sum assured and continues to
participate in State Life’s surplus and receive bonuses.
 Upon the completion of policy :

 Receives the sum assured in lump sum

 Receives in 5 equal installments
In case of death :
 The policy is carried on and switched to in benefit of the other child.
 Premiums is refunded if the child dies.
 Policy is continued without naming to another child no refund is given.
If the policy holder survives:
 Full sum assured together with accrued bonuses are paid at maturity. The
plan can be effected by the parents child.
 Other:
Blood relatives can also take this plan for the child without any underwriting
Evidence.
 Table 76:
Child education and marriage plan :

 This plan is similar to table

75 , it does not cater any
income benefit. This plans
caters public insurance
where income benefit is not
required. For example :
grand parents wants to
provide lump sum benefit at
a specified date. All other
benefits are identical to table
75.