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UNIVERSITYOFTHEPUNJAB

STATE LIFE INSURANCE CORPORATION

SUBMITTED TO:

Prof. MirzaMukhtar Ahmad

SUBMITTED BY:

Class: B.Com. (Hons.)

Semester: 7th

Section: A (Morning)

Session: (2009-2013)

Subject Code:IRM

CONTENTS

Brief History ................................................................................................................................................. 6

Mission.......................................................................................................................................................... 6

Quality Policy ............................................................................................................................................... 6

Organizational structure................................................................................................................................ 7

A. Board of directors................................................................................................................................. 7

B. Executive Directors .............................................................................................................................. 7

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C. Divisional Heads .................................................................................................................................. 7

D. Regions ................................................................................................................................................ 7

E. Zones .................................................................................................................................................... 7

Objectives ..................................................................................................................................................... 7

Major Achievements ..................................................................................................................................... 8

Subsidiaries ................................................................................................................................................... 8

State Lifes Products ..................................................................................................................................... 9

SUPPLEMENTARY CONTRACTS................................................................................................ 9

Investment of funds....................................................................................................................................... 9

Govt. Securities..................................................................................................................................... 9

Approved Govt. Securities .................................................................................................................... 9

Loans..................................................................................................................................................... 9

Equities ............................................................................................................................................... 10

Immovable Property............................................................................................................................ 10

Policies offered ........................................................................................................................................... 11

1. WHOLE LIFE ASSURANCE .................................................................................................................... 11

ELIGIBLE AGES: ........................................................................................................................................ 11

Privileges And Conditions ....................................................................................................................... 11

Guarantee ................................................................................................................................... 11

Payment of Premium .................................................................................................................. 12

Grace Period ................................................................................................................................ 12

Revival of Lapsed Policies............................................................................................................ 12

Paid-up Policies ........................................................................................................................... 12

Surrender Value .......................................................................................................................... 12

Loans ........................................................................................................................................... 13

Automatic Non-Forfeiture Options ............................................................................................. 13

Evidence of age ........................................................................................................................... 13

Suicide ......................................................................................................................................... 14

Currency and Place of Payment .................................................................................................. 14

Notice of Assignment and Nomination ....................................................................................... 14

Supplementary Benefits .............................................................................................................. 14

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Premium Notices ......................................................................................................................... 14

Incontestability ........................................................................................................................... 14

Travel, Residence and Occupation .................................................................................................. 15

Free Look Period ............................................................................................................................. 15

Liquidated Damages ........................................................................................................................ 15

2. State Life Endowment Assurance Policy ............................................................................................. 15

Endowment Assurance ................................................................................................................... 15

Suitability........................................................................................................................................ 15

Benefits of Endowment Policy ....................................................................................................... 16

Supplementary Covers .................................................................................................................... 16

A. Accidental Death & Indemnity Benefit (AIB) ................................................................................ 16

Full Face Value ................................................................................................................................... 16

Half of Face Value .............................................................................................................................. 16

B. Accidental Death Benefit (ADB) .................................................................................................... 17

C. Family Income Benefit (FIB).......................................................................................................... 17

Surrender Value .............................................................................................................................. 17

Premium Calculation ...................................................................................................................... 17

3. SHEHNAI POLICY............................................................................................................................ 17

Features of shehnai policy ...................................................................................................................... 18a) Insured age at entry ......................................................................................................................... 18

b) Minimum sum insured acceptable: ................................................................................................. 18

c) Policy holders right to refuse increase in premium & benefits: ..................................................... 18

d) No evidence of insurability:............................................................................................................ 18

e) Surrender values: ............................................................................................................................ 19

f) Policy loans and non-refundable benefits: ...................................................................................... 19

g) Benefits: .......................................................................................................................................... 19

i. Maturity Benefit:......................................................................................................................... 19

ii. Death Benefits:............................................................................................................................ 19

h) The Behtar option: .......................................................................................................................... 20

i) Riders:............................................................................................................................................. 20

j) Bonus: ............................................................................................................................................. 20

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4. Term Insurance Scheme...................................................................................................................... 20

Product subscription / features........................................................................................................ 20

What need does it fulfill? ................................................................................................................ 20

The Benefits of Plan........................................................................................................................ 21

What riders can be added? .............................................................................................................. 21

a) PTD (Accident) Rider................................................................................................................. 21

b) A.D.B. Rider............................................................................................................................... 21

c) Natural Disability Rider.............................................................................................................. 21

d) Critical Illness Rider................................................................................................................... 21

Suitability........................................................................................................................................ 22

5. CHILD EDUCATION & MARRIAGE PLAN .................................................................................. 22

ELIGIBLE AGES: -................................................................................................................................ 22

SALIENT FEATURE OF THE PLAN........................................................................................... 22

BENEFITS...................................................................................................................................... 22

If The Policy Holder Survives The Term Of Policy: ...................................................................... 23

Premiums ........................................................................................................................................ 23

Prospective Policy Owner............................................................................................................... 23

Underwriting Requirements ............................................................................................................ 23

JEEVAN SAATHI ........................................................................................................................................... 23What is Jeevan Sathi Plan?...................................................................................................................... 23

To whom does this plan apply? .......................................................................................................... 23

What needs does it fulfill? .................................................................................................................. 24

What are the benefits of Jeevan Sathi Plan? ...................................................................................... 24

What are the conditions of this Plan? ................................................................................................. 24

What riders can be added? ..................................................................................................................... 24

Family Income Benefit (FIB) ................................................................................................................ 25

Accidental Death Benefit (ADB) .......................................................................................................... 25

Accidental Death & Indemnity Benefit (AIB) ...................................................................................... 25

Term Insurance ................................................................................................................................... 25

Payment of premium: ......................................................................................................................... 25

Will there be any bonuses on this policy? .......................................................................................... 26

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What about loan facility? .................................................................................................................... 26

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Brief History

State Life Insurance Corporation of Pakistan was incorporated on November 1, 1972under the Life Insurance Nationalization Order, 1972. Due to its well established AgencyNetwork of more than 90,000 sales people, State Life is the largest Life Insurance Corporation

since 1972 in Pakistan.

The Life Insurance Business in Pakistan was nationalized in March 1972. Prior to 1972,

32 Life Insurance companies were involved in the life insurance business. These companies were

later merged and placed under three Beema Units named A, B and C Beema Units. Later,

these Beema Units were merged and State Life Insurance Corporation of Pakistan came into

existence.

The major function ofState Life Insurance Corporation of Pakistan is to carry out Life

Insurance Business; however, it is also involved in the other business activities such as

investment of policyholders fund in Government securities, Stock market, Real Estate etc.

Mission

To remain the leading insurer in the country by extending the benefits of 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.

http://www.statelife.com.pk/http://www.statelife.com.pk/

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Organizational structure

The corporation is headed by chairman who is a chief executive of the corporation and

appointed by the Government of Pakistan. Presently, Shahid Aziz Siddiqi is the chairman of the

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 Officesacross the country for Individual Life Insurance

The organizational structure of the corporation is as follow:

A. Board of directors

It comprises ten Directors including Chairman who are appointed by the Government of Pakistan

and are responsible for devising strategies & plans to achieve the goals of Corporation.

B. Executive Directors

It comprises ten Executive Directors responsible for implementation of policies set by the

Board of Directors.

C. Divisional Heads

There are 14 Divisional Heads who are responsible for the functional area assigned to

them.

D. RegionsThere are 4 regions in Pakistan headed by regional chiefs responsible for looking after all

the zones under his administration.

E. Zones

There are 26 zones in Pakistan headed by the zonal head responsible for procurement of business

to achieve the set business target of the organization.

Objectives

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.

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To widen the area of operation of life insurance and making it available to as large asection 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 the wider interest of the community.

Major Achievements

The major achievements of State Life are as under:

1) On the commencement of the operations, the Corporation took a very important step byeffecting reduction up to 33% in the premiums on the past and potential Life Policies for

the benefit of the Policyholders.

2) State Life is profitable organization and it paid Rs.3.473 billion as dividend to theGovernment of Pakistan since its inception in 1972.

3) State Life has played very vital role in the economy by providing employment to thepeople 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 31.12.2011 stands at Rs.275.11 billions.

4) 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.

5) The Paid up Capital increased from Rs.10 million in 1972 to Rs.1,100 million in 2011.6) 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 2011.7) Total statutory fund of State Life stands at Rs.268.60 billion in 2011 as against Rs.1.494

billion in 1972.

8) 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 the

total number of policies inforce under individual life were 3.774 million and number of

lives covered under group life insurance were 6.044 million.

Subsidiaries

State Life has the following subsidiaries:

Alpha Insurance Company Limited State Life (Abdullah Haroon Road) Properties (Private) Limited State life (Lackie Road) Properties (Private) Limited State Assets Management Company Limited (SAMCO)

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State Lifes Products

State Life basically deals in following line of Business:

Annuities Conventional Life insurance (Home Business) Group Life Insurance Pension Services Universal Life Business (Home Business)

SUPPLEMENTARY CONTRACTSState 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 available

exclusively.

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 & Surgical Benefit (H&S)

Investment of funds

State Life Insurance Corporation of Pakistan invests its funds in accordance with the provisions contained

in Insurance Ordinance 2000, Insurance Rules 2002 and SRO(309) K of 1970 as amended to date by the

Government of Pakistan.

Govt. SecuritiesThese include instruments issued by Government of Pakistan such as Treasury bills, Pakistan Investment

Bonds etc.

Approved Govt. SecuritiesThese include instruments as Wapda Bonds, Provincial Securities/TFCs etc.

LoansThese include loans in the form of Term finance certificates etc.

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EquitiesThese include shares of listed and unlisted companies

Immovable PropertyThese include buildings, plots etc.

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Payment of PremiumPremiums are payable yearly in advance directly to State Life. Advance payments of half-yearly,

quarterly and monthly premiums will be accepted as installments of the yearly premiums. If the Life

Insured dies, then the unpaid installments for that policy year (if any) will be deducted from whatever

amount is otherwise payable by State Life. Receipts for premiums are valid only if issued on forms

prescribed by State Life and signed by its duly authorized officers. The actual date of receipt of the

premium by State Life will be taken as the date of payment of any premium.

Grace PeriodThe policyholders can pay to State Life any premium within a grace period of 31 days after it

falls due. If the Life Insured dies during the grace period, before the due premium is received by State

Life, then the due premium will be treated as received, but it will be deducted from whatever amount is

otherwise payable by State Life.

Revival of Lapsed PoliciesA lapsed policy may be considered for revival by State Life, upon receipt of evidence, free of cost

and satisfactory to State Life that the life insured is eligible for life insurance. Depending on the duration

of lapse, State Life may either require a declaration of good health by the life insured, his/ her personal

statement or his/her full medical examination report. State Life reserves the right to decline or defer

revival of a lapsed policy or to offer revival on modified terms. A policy lapsed for more than five years

will not be considered for revival.

Paid-up PoliciesState Life will convert this policy into a paid-up policy, at the written

request of the policyholder, provided the policy has been in force for at least two consecutive policy years

and no premiums are in default. No further premiums will be payable but the sum insured will be reduced.

The reduced paid-up sum insured will be quoted by State Life on the request of the policyholder.

*Any bonuses attached to the policy will be taken into consideration while determining the paid-up sum

insured. A policy once paid-up will not be entitled to any further bonuses. If there are any outstanding

dues of State Life against the policy, the paid-up sum insured will be specially calculated to allow for the

clearance of all such outstanding dues.

Surrender ValueThis policy will acquire a surrender value after it has been in force for at least two consecutive

years provided no premiums are in default. The surrender value will be quoted by State Life on request of

the policyholder. The surrender value is guaranteed to be not less than 30% of aggregatepremiums less

any amounts already paid by state life under this policy. Aggregate premiums mean all premiums paid

under the policy excluding the following:

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Premiums for the first policy year, Extra premiums; Premiums for any supplementary covers Loans

State Life may grant a loan to the policyholder on his/her written request, against the net

surrender value of the policy. The amount of loan shall not exceed 80% of the said net surrender value.

The rate of profit or return, and other terms and conditions will be determined by State Life at the time of

granting the loan. Loans of less than Rs.100/- will not be given.

Automatic Non-Forfeiture OptionsIf the policy has acquired a surrender value and a premium has remained unpaid beyond the grace period,

the policyholder will entitled to benefits under one of the following two options given hereinafter,

depending on the option exercised (if any) in his Proposal for this policy;

Option A : Automatic Paid-up Option B : Automatic Premium Loan

The option can be exercised at the time of taking the policy or at any time thereafter while the policy is in

force. The option can be changed subsequently by written intimation to and endorsement in the policy by

State Life, so long as no premiums remain unpaid beyond the grace period. If no option has been

exercised by the policyholder, benefits under automatic paid-up option will apply.

A Automatic Paid-up Option

This policy will be converted into a paid-up policy. The paid-up Sum Insured will be specially calculated

to allow for the clearance of all outstanding dues of State Life against the policy. No further premium(s)

will be payable but the sum insured will be reduced. Any bonuses attached to the policy will be taken into

consideration while determining the paid-up sum insured.

B Automatic Premium Loan Option

So long as the net surrender value of the policy equals or exceeds any due premium remainingunpaid beyond its grace period, State Life will continue to keep this policy in full force, and treat the said

premium as paid by creating an automatic premium loan against the net surrender value of the policy.

Evidence of ageNo benefits will be paid by State Life under this policy, unless the age of the life insured has been

proved to its satisfaction.

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If the age of the life insured is proved to be different from that stated in the proposal of this

policy, State Life will adjust the premiums or benefits under the policy as it deems fit.

This policy will, however, become void from its commencement, if the age of the Life Insured at

the commencement date is proved to be higher than the maximum entry age that was permissible by State

Life under the table and term of insurance mentioned in the proposal of this policy.

SuicideIf the life insured commits suicide within thirteen months from the date this policy was signed or

within thirteen months from the date this policy was last revived then State Life will only return

premiums actually received under this policy.

Currency and Place of PaymentAll amounts payable by State Life shall be paid in Pakistan Currency at the Principal

Office/Office of issue mentioned in this policy.

Notice of Assignment and NominationNotice of assignment or nomination, duly attested, must be submitted for

registration at the office of issue mentioned in this policy. In registering an assignment or a nomination,

State Life does not accept any responsibility for its validity, legal effect or meaning.

Supplementary BenefitsSupplementary benefits (if any) and the corresponding premium payments will be governed by

the terms of the supplementary covers attached to this policy. Premiums for these benefits will, however,

be payable on the same dates as premiums under this policy.

Premium NoticesState Life may issue premium notices although there is no obligation on its part to do so. It is the

duty of the policyholder to pay the premium on its due date or within the grace period, whether premium

notice is received or not.

Incontestability

Policies are incontestable with regard to statements made in the proposal after two years from the date of

issue/revival/reinstatement of policy except for fraudulent and willful misstatement of material facts or on

account of breach of any of the conditions of the policy.

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Travel, Residence and OccupationThe policy is free from all restrictions as to travel, residence and occupation.

Free Look PeriodThis Policy shall be liable to be cancelled at the option of the policyholder within fourteen days

of its commencement date and if the policyholder cancels the policy within that time all amounts paid by

way of premium shall be refunded without any deduction for management expenses, other than expenses

incurred in connection with the medical examination of any person insured under the policy

Liquidated DamagesWhere payment under this policy becomes due and the person entitled thereto has complied with

all the requirements, including the filing of complete papers, for claiming the payment, the State Life

shall, if it fails to make the payment within a period of ninety days from the date on which the payment

becomes due or the date on which the claimant complies with the requirements, whichever is later, pay as

liquidated damages on the amount so payable unless State Life proves that such a failure was due to

circumstances beyond its control.

2.State Life Endowment Assurance Policy Endowment Assurance

A fixed term life assurance policy in which provision is made for premiums to pay for

life cover plus a savings/investment element is known as endowment assurance. The policy pays

out a sum of money (the sum assured) on the death of the life assured or at a specified date (the

maturity date) if the life assured survives the term. If an endowment policy is en-cashed in its

early years any proceeds returnable to the policyholder will normally be below the value of the

premiums paid up to cancellation.

Face value plus any bonuses are given at the date of maturity or at the time of accidental

death.

SuitabilityIt is suitable for salaried people especially from the middle-income group.

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Benefits of Endowment Policy It provides both maturity and death benefits. An endowment life insurance policy is designed primarily to provide a living benefit.

Therefore, it is more of an investment plan.

The policy is a method of accumulating capital for a specific purpose and protecting thissavings program against the saver's premature death.

Many investors use endowment life insurance to fund anticipated financial needs, such ascollege education or retirement.

Its a safest and surest method of guaranteed cash provision either at a specified time or atdeath.

The benefits under the plan can be further increased by attaching supplementary covers. It can also be used as an investment for expansion of business, building or repairing homes,

purchasing property and fulfilling loan obligations.

Supplementary CoversState Life offers 3 supplementary covers to enhance coverage under this policy plan, given as follows:

A.Accidental Death & Indemnity Benefit (AIB)Full Face Value

Accidental death, impairment of two or more body parts (hands, feet) from wrist or ankle (or

above), incurable loss of sight in both eyes, incurable loss of sight in either eye along with

impairment of one or more body part from wrist/ ankle or both.

Half of Face Value

Impairment of one part (hand/foot) from wrist/ ankle or above.

One-third of Face Value Incurable loss of sight in one eye. One-fourth of Face Value Amputation/ impairment/ loss of either a thumb or index finger from the knuckle joint.

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B.Accidental Death Benefit (ADB)Full face value at the time of accidental death is given.

C.Family Income Benefit (FIB)It requires a small amount of additional premium. The deceased insured's family would

receive from 10-50% of face value of policy each year in equal annual payments.

Surrender ValueThis policy will acquire a surrender value (The sum of money an insurance company will

pay to the policyholder or annuity holder in the event his or her policy is voluntarily terminated

before its maturity or the insured event occurs) after it has been in force for at least two

consecutive years provided no premiums are in default. The surrender value will be quoted byState Life on request of the policyholder.

Premium CalculationPremium for an endowment life policy is higher than that of a whole life policy.Premiums are

unique for each policy and generally the calculation of premium is done by considering:

A. PolicyB. Term of PolicyC. GenderD. AgeE. Sum AssuredF. Premium payment mode

3.SHEHNAI POLICYShehnai Policy has been designed to provide existing and potential clients an opportunity

to secure the future of their children. It provides a solution to the problems of many concerned

parents who want to save now in order to provide for their children's higher education, marriage

and other expenses when the need arises. At the same time, Shehnai policy also provides a shield

against inflation. Shehnai Policy will also have appeal to those individuals who wish to

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safeguard their children against the risk of their premature death. This plan provides coverage for

a specified term with an increasing sum assured and cash value.

State Life's Shehnai policy is an innovative life insurance policy. The term of the plan is

such that the lump sum benefit becomes payable as the child attains the age of 25 years. This age

is selected considering the occasions on which children generally need financial assistance.

From third policy year onwards the sum insured and the premium increases in the same

proportion, i.e, 6% per annum compound as long as the insured is alive. However, the

policyholder retains the right to refuse the increase in sum insured and premium.

Features of shehnai policy

a)Insured age at entry Minimum 20 years Maximum 60 years Childs Age at entry Maximum 15 yearsb)Minimum sum insured acceptable:

The minimum acceptable sum assured will be 50,000 initially. This amount is likely to increase

later.

c)Policy holders right to refuse increase in premium &benefits:

Policyholder has the right to refuse the increase in premium. He may continue the policy by

paying the previous premium. If this right is exercised, the basic sum insured will also remain the same as

in the previous year.

d)No evidence of insurability:No Evidence of insurability is required for automatic increase in sum insured except when

policyholders have refused the increase 3 times during the policy terms. if the policy holder has

refused the increase 3 times evidence of insurability will be required.

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e)Surrender values:The surrender value is equal to the greater of

Surrender value of the policy

30% of total premium paid less the 1st year premiumThe policy holder can surrender the policy after completion of two policy years provided

no premium is in default.

f)Policy loans and non-refundable benefits:The policyholder may take out policy loan up to 80% of surrender value after payment of 3

rd

premium.

g)Benefits:i. Maturity Benefit:

The policy matures when the child reaches age 25. At maturity, the cash value of

the policy is paid to the child. The cash value includes all the bonuses that have been

credited to the policy.

ii. Death Benefits:If the insured dies before the expiry of the term of the policy, the future premium

under the policy is waived but the policy continues to participate in State Life's surplus.

At the time of death of the insured, sum insured applicable to the policy year of death is

added to the adjusted opening cash value to be called enhanced cash value. The enhanced

cash value will continue to participate in State Life's surplus.

In case of child's death while the policyholder is still alive, the policyholder has three

options:

I. Switch the plan for the life of another child and continue the policy.II. Get the adjusted opening cash value at the beginning of the year of death of the

child and terminate the contract.

III. Continue the contract without naming another child.

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h)The Behtar option:The child will always have a Behtar Option. Under this option the child may collect the lump sum benefit

in five annual equal installments. The sum of these five installments will be greater than the lump sum.

Under present conditions, it is expected that the sum of the installments will be greater than the lump sum

by about 26%.

i)Riders:Accidental Death Benefit (ADB), Accidental Indemnity Benefit (AIB), Term Insurance Rider (TIR),

Family Income Benefit (FIB) rider can be attached subject to the usual underwriting rules. However,

where AIB is attached, in event of claim for waiver of premium, automatic increase in sum insured and

premium will cease.

j)Bonus:The rate of bonus will be determined by the statutory actuarial valuation, which is done every two years.

It will be credited only at the end of the policy year, when the policy year is completed. Bonuses will be

calculated on the adjusted opening cash value for the policy year (item V) and not on the basic sum

insured.

4.Term Insurance Scheme Product subscription / features

Group Term Insurance Plan provides life insurance coverage to the member of a

group, such as the 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 toimproving 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 is lower as compared to sum of premium of all policies if issued individually to

each life, due to savings in expenses.

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The Benefits of PlanOn death of any insured member the sum assured on his life is paid for the benefit

of his surviving 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?a)PTD (Accident) Rider

Under this rider the insured member is entitled to payment of the sum assured in case of any

accident 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

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 fortnightly

benefit calculated at the rate of Rs. 3,000 per month or the monthly salary whichever is less is

payable.

b)A.D.B. RiderUnder this rider the death benefit of an insured member is doubled if the death was caused by an

accident.

c)Natural Disability RiderUnder 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 then

he is entitled to the sum assured as benefit.

d)Critical Illness RiderIf 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

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

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

SuitabilityThe 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 some welfare association or a social club who desire to avail insurance protection on a

collective basis.

5.CHILD EDUCATION & MARRIAGE PLANELIGIBLE AGES: -M inimum Age: 20 years

Maximum Age: 60 years

Age (Maximum) on M aturity: 70 years

SALIENT FEATURE OF THE PLANChildren education and marriage plan is a plan for the protection of Childs future. This

plan provides coverage for a specified term. It provides a lump sum benefit for child at the

completion of policy term. The term of the plan is such that lump sum benefit becomes s payable

when the child attains a pre-determined 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.

BENEFITSI f the policy holder dies before the expir y of the term :

A regular income benefits of Rs.240 per 1000 sum insured per annum is paid to the child until

the completion of the policy term. Further, the future premiums under the policy are waived and

the policy remains in force with full sum assured and continues to participate in state lifes

surplus and receives bonuses.

Upon the completion of the policy term, the child receives the full sum assured plus bonuses

accrued over the entire term. At this stage the child has two options:

a) Receives the proceeds in a lump sum;b) Receives the proceeds in five equal annual installments

I n the case of death of the chi ld while policy holder is alive:

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a) Continue the policy in the same manner as earlier by switching the plan for the benefit ofanother child

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

c) Continue the policy without naming another child in which case the benefit of refund ofpremium [as provided above in b condition] will not be available.

If The Policy Holder Survives The Term Of Policy:Full sum assured together with the accrued bonuses becomes payable to the policy holder on

the maturity date.

PremiumsUnder this plan a level premium is payable till the maturity date or earlier death of the policy

holder.

Prospective Policy OwnerThis plan can be affected by parents of the child. However, grandparents, uncles, aunts or

any other person who is paying for the maintenance of the child can also purchase this plan.

Underwriting RequirementsUnderwriting requirements for this plan will be similar to the underwriting requirements

for an endowment plan with comparable age, term and sum assured i.e. according to the usual

underwriting rules and procedures. No underwriting evidence will be required for childs life.

JEEVAN SAATHI

What is JeevanSathi Plan?The family plays a vital role in our society. The prosperity of our society depends on the

prosperity of the family. For the well-being and protection of the family, State Life has

designed a policy on the lives of husband and wife which is named as JeevanSaathi Plan. This

policy ensures financial protection and well-being to married couples.

To whom does this plan apply?1 - Married couple who:

- Wish to have a secure future.

- Have the responsibility of children.

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- Want to maintain standard of family life.

2 - Such two individuals who financial depend on each other; e.g. two business partners, etc.

What needs does it fulfill? Guaranteed protection for whole family. To get rid of economic problems. Absolute security for earnings in old age. Satisfied and happy future. Stability of the business in case of death of one partner.

What are the benefits of JeevanSathi Plan?1- Under the JeevanSathi Plan, the husband and wife or two business partners are not

discriminated on the basis of economic and financial grounds and they are equally

entertained in terms of protection.

2- God forbid, if one of them expires, then not only the sum assured is paid to the survivinglife assured but the policy also continues on the survivor without payment of futurepremium. From this aspect it is a consolidated Plan which provides protetion and security.

3- God forbid if both the partners expire during the term of policy, then 2 folds of sumassured and the accrued bonuses will be paid to the heirs. However, the estimation of

bonus is based on Basic Sum Assured.

4- On the death of the first partner, although the entire insurance amount is paid, even then ifthe other partner survives till the policy's maturity then the sum assured plus accrued

Bonuses will be paid to him/her.

5- If both the life insured survive (by the grace of God) till the policy's maturity, then as perrules, Basic Sum Assured plus the accumulated bonuses (in case of with profit policies)

will be paid.

What are the conditions of this Plan?

1- To purchase a JeevanSathi Plan, each individual will have to submit a separate proposalform.

2- Both the person shall have to undergo the required medical examination / etc,separately.

3- The basic rates of premium are based on the equal ages of two persons. If their agesdiffer, the equivalent age will have to be determined as per the Uniform Seniority Table.

What riders can be added?The attachment of following supplementary contracts to the plan can substantially increase the

benefits of policy:

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Family Income Benefit (FIB)Family Income Benefit contract can be added to this plan on payment of nominal

additional premium. If this contract is issued on any one of the lives assured, then on his/her

death during the term of FIB contract, in addition to Basic Sum Assured, a regular annual

Family Income Benefit installment at least 10% and utmost 50% of the Basic Sum Assuredbecomes payable till the expiry of FIB contract to the heirs of the policyholder.

Accidental Death Benefit (ADB)If this supplementary contract is issued on any one of the lives assured, then on his/her accidental

death during the term of the policy, an amount equal to Basic Sum Assured, become payable.

Accidental Death & Indemnity Benefit (AIB)If this supplementary contract is issued on any one of the lives assured, then on accidnetal loss

following benefits become payable:Accidental Death ------------------Sum assured

Loss to two or more limbs ------Sum assured

Total and irrecoverable loss

of all sight in both eyes.----------Sum assured

Total and irrecoverable loss

of all sight in one eye and

loss of one limb --------------------Sum assured

Loss of one limb -------------------One half of the sum assured

Total and irrecoverable loss of

all sight in one eye ----------------One third of sum assured

Loss of thumb and index finger

of either hand ----------------------One fourth of sum assured

For other injuries,

On total disability ----------------- Weekly indemnity @ 5/- per thousand sum assured

On partial disability--------------- Weekly indemnity @ 1.5/- per thousand sum assured

On permanent and total disability-----------------------------------------Annual payment of 10% of sum

assured for a maximum period of 10 years.

Term InsuranceWith a nominal addition in premium, term insurance contract can be added to the plan. If

this supplementary contract is issued on any one of the lives assured, then on his/her deathduring the term of the contract, an amount equal to Basic Sum Assured, become payable.

Payment of premium:Like other life insurance plans, the premium can be paid yearly, half yearly, quarterly or

on monthly basis. The policyholder can opt for any mode of premium payment that suits

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