Bonus Rates

Bonus Rate (Home Business)
Bonus Rate ( Foreign Currency)
Specified Major Surgical Benfits

Bonus Rates

State Life offers attractive bonuses that are declared on the basis of Actuarial Valuations. Presently the following types of bonuses are available for different plans subject to the terms and conditions applicable to each. Please click on the links below and find out which bonuses are attachable to your policy.

Reversionary bonus
Special Reversionary bonus
Terminal bonus
Special Terminal bonus
Terminal bonus for (With Profit Tables/Plans) PAID-UP Policies
Thirtieth Anniversary bonus
Millennium bonus
Golden Jubilee bonus
One Time bonus
Loyalty Terminal Bonus

Reversionary Bonus

The present rates of Reversionary Bonus per thousand of sum assured, for all with profit Pak Rupee policies that were in force for the full sum assured as at 31st December 2007, announced as a result of the Actuarial Valuation as at 31st December 2007 are as under:

Special Reversionary Bonus

This bonus is exclusively for Anticipated Endowment Assurance with profit Pak Rupee policies. If the policyholder lets a Survival Benefit remain with State Life, a Special Reversionary Bonus will be added six months after the due date of the Survival Benefit. For policies that were in force for the full sum assured that have Survival benefits falling due in 2008, which the policyholder opts to leave, Special Reversionary bonus will be allowed as follows:

Terminal Bonus

Terminal bonus is available for all with profit Pak Rupee policies in force for the full sum assured, except Anticipated Endowment policies. It is payable only on maturity or earlier death of the life insured in the year 2008 and does not carry any surrender value. A pre-condition for entitlement of this bonus is that more than ten years’ premiums must have been paid against a policy. Presently, the rate of the bonus is Rs.50 per thousand sum assured for each year’s premium paid in excess of 10 years subject to a maximum of Rs.1000 per thousand sum assured.
Please contact your servicing State Life zonal office for other terms and conditions related to this bonus and the details of total bonuses attached to your policy.

Special Terminal Bonus

Special Terminal bonus, at present rates, is available for all with profit Pak Rupee policies in force for the full sum assured. It is payable on maturity of the policy in the year 2008 and does not have any surrender value. It is attached on the policies where Family Income Benefit (FIB) supplementary cover has remained in force for more than 10 years. Currently the rate of special terminal bonus is Rs.10 per thousand basic sum assured for each year in excess of ten years’ that the FIB has been in force, subject to a maximum of Rs.200 per thousand of sum assured.
This bonus is also payable under Child Protection Policy and Child Education & Marriage Plan having built-in FIB.
Please contact your servicing State Life zonal office for other terms and conditions related to this bonus and the details of total bonuses attached to your policy.

Terminal bonus for (With Profit Tables/Plans) PAID-UP Policies

This bonus was announced for the first time in 2005 Actuarial Valuation. This bonus has been retained in 2007 Valuation. It is payable to Paid-up policies (Whole Life and Endowment) terminating by way of death or maturity in 2008. It is attached on the policies where policies have been on the books for more than 10 years. The rate is Rs.50 per thousand Paid-up Sum Assured for each year in excess of 10years subject to a maximum of Rs. 1000 per thousand Paid-up Sum Assured.
This bonus is also payable to Anticipated Endowment paid-up policies terminating by way of death only in 2008.
Please contact your servicing State Life zonal office for other terms and conditions related to this bonus and the details of total bonuses attached to your policy.

Thirtieth Anniversary Bonus

This bonus was announced in Actuarial Valuation as at 31st December 2002 in celebration of the 30th anniversary of State Life Insurance Corporation of Pakistan. It is payable on all with profit Pak Rupee policies that were in force for the full sum assured as at 31st December 2002, where more than 10 years’ premiums have been paid. This is just a one-time bonus.
In respect of Whole Life and Endowment Assurances, the rate of bonus is Rs.48 per thousand sum assured for each years’ premium paid till 31st December 2002 in excess of 10 years subject to a maximum of Rs.480 per thousand sum assured.
In respect of Anticipated Endowment Assurances, the rate of bonus is Rs.24 per thousand sum assured for each years’ premium paid till 31st December 2002 in excess of 10 years subject to a maximum of Rs.240 per thousand sum assured.
This bonus, if allowed on a policy fulfilling the conditions mentioned above, would also carry a surrender value.
Please contact your servicing State Life zonal office for other terms and conditions related to this bonus and the details of total bonuses attached to your policy.

Millennium Bonus

Millennium bonus was announced in Actuarial Valuation as at 31st December 2000 for all with profit Pak Rupee policies. It is payable in full on maturity or earlier death of the life insured. To qualify for this bonus, a policy must be in force for the full sum assured as at 31st December 2000 and premiums for the year 2001 must be paid in 2001. The rate of bonus is Rs.51 per thousand sum assured. This is just a one-time bonus.
Millennium bonus also acquires a surrender value on in force policies if five full years’ premiums have been actually paid and the policy has been in force for at least five complete policy years.
Please contact your servicing State Life zonal office for other terms and conditions related to this bonus and the details of total bonuses attached to your policy.

Golden Jubilee Bonus

This bonus was announced in the Actuarial Valuation as at 31st December 1996 for all with profit Pak Rupee policies in celebration of the fiftieth anniversary of Independence of Pakistan. It is payable on maturity of the policy or earlier death of the life insured and does not have any surrender value. To qualify for this bonus, a policy must be in force for the full sum assured as at 31st December 1996 and premiums due in the year 1997 must be paid in 1997. The rate of bonus is Rs.50 per thousand sum assured. This is just a one-time bonus.
Please contact your servicing State Life zonal office for other terms and conditions related to this bonus and the details of total bonuses attached to your policy.

One Time Bonus

One time bonus was announced in the Actuarial Valuation as at 31st December 1994 for all with profit Pak Rupee policies. It is payable on maturity of the policy or earlier death of the life insured and does not have any surrender value. To qualify for this bonus, a policy must be in force for the full sum assured as at 31st December 1994 and premiums due in the year 1995 must be paid in 1995. The rate of bonus is Rs.40 per thousand sum assured. This is just a one-time bonus.
Please contact your servicing State Life zonal office for other terms and conditions related to this bonus and the details of total bonuses attached to your policy.

Loyalty Terminal Bonus

This bonus was announced in the Actuarial Valuation as at 31st December 2007 for all with profit Pak Rupee policies that have been with State Life since 1988 or earlier. The rate of Loyalty Terminal Bonus is Rs.200 per thousand sum assured and will be paid on claims by death or maturity in 2008 to with profit Pak Rupee policies with risk year 1988 or earlier.
Please contact your servicing State Life zonal office for other terms and conditions related to this bonus and the details of total bonuses attached to your policy.
Disclaimer regarding future bonuses:Bonus rates for future years are not guaranteed and may either go up or down depending on future Actuarial Valuations.

Disclaimer regarding future bonuses

Bonus rates for future years are not guaranteed and may either go up or down depending on future Actuarial Valuations.

Specified Major Surgical Benefit

Specified Major Surgical Benefit was announced for the first time in 1992 Actuarial Valuation. This benefit has been retained in 2007 Valuation. This benefit is available to all with profit policies, which have been in full force as at 31st December 2007 and have been continuously in force for at least five complete policy years at the date of surgery. The maximum benefit for such policies is Rs. 250,000/-. However, if with-profit policies have been in full force as at 31st December, 2007 and have been continuously in force for at least ten complete policy years at the date of surgery then the maximum benefits for these policies will be Rs.500,000/-.
Under such policies, if the life assured undergoes specified major surgery during the inter-valuation period i.e. from 1st January 2008 to 31st December 2008 on account of a specified dread disease, the Corporation would pay 50% of the basic sum assured [in case of Anticipated Endowment plan, 50% of the remaining sum assured after deducting any due survival benefit(s)], subject to the above given maximum payment. The amount payable will be adjusted against future payments under the policy such as Survival Benefits, Maturity Claims or Death Claims.
Explanation:This benefit is free of cost and provides valuable relief to the life insured if he/ she undergoes specified major surgery from 1st January 2008 to 31st December 2008. The cost of the benefit will be met out of the actuarial surplus revealed by the 31st December 2007 Actuarial Valuation. The following questions provide details regarding the benefit:

Which policies will be eligible for the benefit?

To be eligible for the benefit, all the following conditions must be fulfilled:
a. It must be With Profits Pakistan Rupee policy. Policies issued under Term Insurance plans, Personal Pension Scheme and Annuity plans are specifically excluded.
b. As on December 31, 2007, the policy must have been in force for full sum assured. If a premium was due in December 2007, and the grace days had not expired on December 31, 2007, then the policy will be considered in force for full sum assured for this purpose if the premium due was paid within the grace period, or advanced by State Life under the APL option.
If the policy was in force on December 31, 2007 under the APL option, it will be counted as being in full force for this purpose. Likewise, a policy loan will not disqualify the policy, provided that the total outstanding loan and other encumbrances were within the surrender value as at December 31, 2007. But the amount of the benefit will be reduced to adjust for the APL or outstanding Cash Loan together with any other encumbrances. Please see question 5 below.
c. As at the date of surgery, the policy must have been continuously in force for at least five complete policy years.
d. The surgery should take place during the period January 1, 2008 to December 31,2008.

Explanation

The continuation of the Scheme to cover surgery after December 31, 2008 will depend on the actuarial valuation due as at December 31, 2008.
e. The policy should be continuously in full force from December 31, 2007 to the date of surgery, with no intervening lapses, paid ups or auto surrenders.

Explanation

If the policy was in force under the grace period at the date of the surgery, it will be considered in full force for this purpose provided the relevant premium was paid in full during the grace period, or advanced by State Life under the APL option.
A policy in force on December 31, 2007 which later on lapsed or became auto surrendered and was then revived before surgery will not be eligible for benefit in respect of surgery during January 1, 2008 to December 31, 2008. However, if the scheme is continued beyond December 31, 2008, to be decided after the actuarial valuation as at December 31, 2008, then such a policy may be eligible for surgery after December 31, 2008 subject to the terms and conditions decided after the 2008 actuarial valuation.
f. As at the date of the surgery, the life insured under the policy should be aged at least 20 years and not more than 65 years. For this purpose, actual dates of birth will be reckoned, not ‘nearest birthday’.

What surgical procedures are eligible for benefit

The following surgical procedures are covered, provided they were caused by disease and not traumatic injury:

Coronary artery by-pass surgery

Undergoing of open heart surgery to correct narrowing or blocking of two or more coronary arteries with by-pass grafts. Laser treatments and/ or relief’s, balloon angioplasty and/ or any other procedures not necessitating thoracectomy will be excluded.
The coronary by-pass surgery must be a direct result of a diagnosis of definite coronary artery disease by accepted angiography.

Surgery for a disease of the aorta

The actual undergoing of open heart surgery for a disease of the aorta needing excision and surgical replacement of the diseased aorta with a graft. For the purpose of this definition, aorta shall mean the thoracic and abdominal aorta but not its branches.

Replacement of a heart valve

The replacement of one or more heart valves with artificial valves due to stenosis or incompetence, or a combination of these conditions. Valvotomy is specifically excluded

Major organ transplant:

The actual undergoing of a transplant of a heart, heart and lung, liver, kidney or bone marrow as a recipient.

Craniotomy:

Any major neuro-surgical procedure on or in the brain, involving craniotomy

Cancer surgery

Any major surgical procedure which is the direct result of cancer. For this purpose, cancer means a malignant tumor characterized by uncontrolled growth and spread of malignant cells and the invasion of tissue. Malignancy must have been evidenced by medical investigations. Excluded are: (a) non-invasive cancers in situ; (b) any skin cancers other than malignant melanoma; and (c) male prostate cancer if limited to the prostate.

What will the benefit consist of?

The benefit will consist of an accelerated payment of 50% of the basic sum assured under the policy (excluding the sum assured under any supplementary contracts), subject to a maximum of Rs. 250,000 for policies in full force for at least five years and a maximum of Rs. 500,000 for policies in full force for at least ten years as at the date of surgery. The benefit will be subject to the following further conditions:
a. If the insured is covered under a Whole Life or Endowment type policy, such as Table 01 or 03, the accelerated payment will be adjusted against the sum payable on death or maturity.
b. If the insured is covered under an Anticipated Endowment type policy, such as Table 05 or Table 74, the accelerated payment will be 50% of the total of all future survival and maturity benefits or the maximum limit, whichever is less. If a survival benefit due date has passed, it will not be included in the calculation of the 50%, even if the survival benefit installment was left with State Life under the Special Reversionary Bonus Scheme.The future survival and maturity benefits will be reduced by the specified major surgical benefit to adjust the accelerated payment made on the surgery. If the life insured dies before maturity, the balance of the accelerated payment not yet adjusted from survival benefits will be adjusted from the death benefit.
c. In case of Joint Life policy (Table 06) 50% of the sum assured or the maximum limit, whichever is less, will be payable if either of the insured lives undergoes a specified surgery. It will be recovered on maturity or on earlier death of either of the insured persons.
d. In case of Child Protection Plan (Table 07) and Child Education and Marriage Plan (Tables 75 & 76), 50% of the sum assured or the maximum limit, whichever is less, will be payable in advance, if the payor undergoes a specified surgery. It will be recovered on maturity. No specified major surgical benefit is payable in respect of surgery on a "child" covered under these tables.
e. In case of Jeevan Saathi Plan (Table 19), 50% of the sum assured or the maximum limit, whichever is less, will be payable in advance if either of the lives insured undergoes a specified surgery. It will be recovered on maturity or the earlier death of that particular life insured.
f. In case of a Big Deal policy (Table 14), amount of the basic sum assured will mean Rs. 25,000 per unit. 50% of this basic sum assured or the maximum limit, whichever is less, will be payable in advance, on undergoing a specified surgery. It will be recovered in lump sum on maturity or earlier death.

What if the life insured has more than one eligible policy

The accelerated benefit payable under all policies taken together will depend on the number of the years policies have been continuously in full force. For the policies that have been continuously in full force for at least five years but less than ten years, the maximum benefit paid under all such policies together will be limited to Rs.250,000/- or 50% of the sum assured, whichever is less.
For policies that are continuously in full force for at least ten years, the maximum benefit payable under each policy is limited to Rs.500,000/- or 50% of the sum assured, whichever is less.
The benefit will be paid (at 50% of the basic endowment benefits outstanding subject to the maximum amount) from the policy issued first to the insured. If the amount paid is less than the maximum limit then amount will be paid from the second policy issued and so on subject to the maximum limit. In other words, if life insured is covered under multiple policies and is eligible for surgical benefit, then the benefit will be paid from the policy issued first to the life insured.
5. How will APL or cash loans be treated?
If there is an APL or Cash Loan under the policy, the accelerated payment on surgery will first be used to pay off the “APL and/ or Outstanding cash loan including any other encumbrances”. The remaining part of the accelerated benefit after this adjustment will be paid to the

How will APL or cash loans be treated

If there is an APL or Cash Loan under the policy, the accelerated payment on surgery will first be used to pay off the “APL and/ or Outstanding cash loan including any other encumbrances”. The remaining part of the accelerated benefit after this adjustment will be paid to the policyholder.

How will the surrender value be calculated after specified major surgical benefit is paid?

If specified major surgical benefit is paid, it will affect the basic surrender value of the policy from which it is paid. The subsequent surrender value of the policy will be reduced proportionate to the outstanding endowment benefit advanced. Suppose the benefit consists of an accelerated payment of 50% of the basic sum assured, then the subsequent surrender value will be 50% of the basic surrender value had no specified major surgical benefit been paid.
The surrender value of accrued bonuses will not be affected by the payment of the specified major surgical benefit.
The total surrender value of the policy would be the reduced basic surrender value of the policy plus the surrender value of the accrued bonuses.

What will be the position of the policy after the accelerated benefit payment

The policy will continue to participate in the profit of the Corporation. Further bonuses will not be reduced on account of the benefit.
b. Premiums under the policy, including extra premiums if any, will continue to be payable by the policyholder, unaltered.
c. Any supplementary contract attached to the policy, and premium thereunder, will be unaffected by the payment of the accelerated benefit.

Suppose the life insured has more than one surgery of the type listed. What happens then?

The benefit will be payable only once to any one life. If the life insured again undergoes any surgery whatsoever, no benefit will be payable even if the later surgery was of a different type from the first surgery for which benefit was paid.
Likewise, the benefit will be payable only once under any policy. This means that under Joint Life or Jeevan Saathi policies, or other policies under which there is more than one life insured, if any accelerated benefit has been paid in respect of one life, then neither life insured will be eligible for any future surgical benefit.

Please describe claim procedures

Evidence satisfactory to State Life of having had the eligible surgery will have to be provided by the claimant at his own cost. The claimant will have to file the original policy document and submit a personal statement.
Confidential statement will also be required from the physician making the original diagnosis and the concerned surgeon(s), including the surgeon who performs the operation. State Life may require any additional proof it deems necessary, including but not limited to reports, test results and medical examination of the life insured. The decision of State Life shall be final and binding on all concerned.
If the policy is assigned, then the official discharge and written permission of the assignee must be filed before the accelerated benefit can be paid.
If the policy has an irrevocable beneficiary, or the policyholder/ policyowner is not the life insured, then the official discharge and written permission of the beneficiary/ policyowner must be filed before the accelerated benefit can be paid.
Under Joint Life and Jeevan Saathi policies, all the policyholders/ lives insured must sign the official discharge and give written permission for payment of benefit.

Can the benefit be paid in anticipation of the surgery?

The benefit cannot be paid before the surgery takes place. It cannot be paid in anticipation of the surgery. Claims can be entertained only after the surgery takes place. The amount of benefit is independent of the cost of surgery. It is not intended to help to pay for the surgery, but rather to provide a lump sum of money to be disposed off as deemed fit by the claimant who gets it. The life insured may use it for post-operative care, or to recoup part of the cost of surgery, or in any other way he wants

Bonus Rates for foreign currency policies

State Life offers the following bonuses for different plans subject to the terms and conditions applicable to each. These bonuses are declared on the basis of Actuarial Valuations.

Reversionary Bonus

The present rates of reversionary bonus per thousand of sum assured, for all with profit UAE Dirham/ US Dollar policies that are in force for the full sum assured as at December 31, 2007, announced as a result of the Actuarial Valuation as at December 31, 2007, are as under:

Policies expressed in US Dollar

Reversionary Bonuses per 1000 of sum assured to with profit US Dollar policies



Description of Plan
For 1st five policy years
From 6th policy year onwards

USD
USD
Whole Life
23
42
Endowments


Term of policy (in years)


20 years and over
17
33
15 to 19 years inclusive
10
23
14 years and less
5
16
Anticipated Endowments


Term of policy (in years)


20 years and over
8
24
15 to 19 years inclusive
5
17
14 years and less
3
13
These bonuses have a surrender value, subject to the fulfillment of certain conditions.
Please contact your servicing State Life zonal office for other terms and conditions related to these bonuses and the details of total bonuses attached to your policy.

Disclaimer regarding future bonuses:

Bonus rates for future years are not guaranteed and may either go up or down depending on future Actuarial Valuations.

Objectives

To run life insurance business on sound line.
To provide more efficient service to the policyholders.
To maximum 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 affluent sections of society to the common man in towns and villages.
To use the policyholders’ fund in he wider interest of the community.

Mission

To remain the leading insurer in the country by extending the benefits if insurance to all sections of 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 after sales service and optimizing return on Life Fund through a quality culture and to maintain ourselves leading life insurer in Pakistan.

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 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. 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 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 Policyholder’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 Life Insurance Business; however, it is also involved in the other related business activities such as investment 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.1.729 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 by investing the huge funds in different sectors of the economy. The Investment Portfolio of State Life as at 31.12.2005 stands at Rs.124.983 billions.
Investment portfolio also includes investment in Real Estate which stands at a book value of Rs.2.309 billion as at 31.12.2005 whereas it fair value is around Rs.17.625 billion in the same period.
The Paid up Capital increased from Rs.10 million in 1972 to Rs.900 million.
The Premium income increased from Rs.0.317 billion in 1972 to 13.820 billion in 2005. Similarly Investment income including rental income increased from Rs.0.81 billion in 1972 to 13.106 billion in 2005.
vii. Total statutory fund of State Life stands at Rs.122.775 billion in 2005 as against Rs.1.494 billion in 1972.
State Life is smoothly striving towards its objective of making life insurance available to large section of the society by extending it to common man. As at December, 2005 the total number of policies inforce under individual life were 2.044 million and number of lives covered under group life insurance were 3.731 million.