Rs. 50,000 a year for 20 years: what a State Life Endowment pays back
Rs. 50,000 a year, a little over Rs. 4,000 a month, is one of the budgets families bring to us most often. Here is what it buys on State Life's Endowment Plan over 20 years, worked out from State Life's published premium rates and the bonus rates it declared for 2025. Just as important, here is which part of the answer is guaranteed and which is not.
In short
- At age 30, Rs. 50,000 a year buys a sum assured of about Rs. 1,043,000 on a 20-year Endowment.
- You pay in Rs. 10 lakh over 20 years. If the 2025 bonus rates were declared every year, the plan would pay about Rs. 43.38 lakh at maturity.
- Only the sum assured and bonuses already declared are guaranteed. If future bonuses were half the 2025 rates, it would pay about Rs. 26.9 lakh.
- Your family is covered for the full sum assured, plus bonuses added so far, from the first year.
How these numbers are worked out
- The premium rate is State Life's published sample rate for a 20-year Endowment (Table-03), per Rs. 1,000 of sum assured, for each age.
- State Life takes Rs. 0.5 per 1,000 off the rate for cover of Rs. 300,000 or more, which applies at every age here.
- State Life adds a policy fee that it does not publish. We have left it out, so the real sum assured for Rs. 50,000 will be slightly lower than shown.
- Bonuses use the same arithmetic as our profit calculator: the 2025 yearly rates (Rs. 52, 117 and 178 per 1,000) and the 2026 terminal bonus, as if repeated every year. They will not be exactly repeated: this is an illustration, not a forecast.
What Rs. 50,000 a year buys at each age
Life cover costs more as you get older, so the same Rs. 50,000 buys a little less sum assured each time. The bonus is a fixed number of rupees per 1,000 of sum assured, so a smaller sum assured means a smaller payout. Up to about 40 the difference is small; after 45 it grows.
Where the money comes from, at age 30
Most of the payout is bonus, not your own premiums coming back. That is why the guarantee question in the next section matters.
What is guaranteed, and what if bonuses fall
The guaranteed floor on day one is the sum assured, about Rs. 1,043,000 at age 30, which is roughly what you will pay in. Each bonus State Life declares is then added to the policy and guaranteed by the Government of Pakistan, so the floor rises every year. What is not guaranteed is the rate of bonuses not yet declared.
The table shows the same plan if every future bonus were lower than in 2025. State Life's rates do change from year to year; this shows how much of the outcome depends on them.
Is it a good return?
If the 2025 rates held for all 20 years, the age-30 payout would work out at about 12.6% a year, compounded, on each premium from the day it was paid. At half the 2025 bonus rates it would be about 8.7%. Compare those with what a bank deposit or a National Savings certificate pays at the time you decide; their rates change too.
Two things a deposit does not do: your family receives the full sum assured plus bonuses if you die in year one, and the fixed yearly premium makes the saving happen. Two things it does better: you can take your money out at any time, and a deposit has no early-years penalty. A plan cashed in during its first years returns less than you paid.
If life does not go to plan
- If you die during the 20 years, your nominee receives the sum assured plus every bonus added so far, and a terminal bonus if more than 10 premiums have been paid.
- Missed a payment? You have 31 days after each due date, and five years to revive a lapsed policy.
- Need money for a while? Borrow against the policy rather than ending it.
- Ending it early pays the surrender value, which in the first years is less than you put in, and gives up the terminal bonus.
A different budget, or a shorter commitment
Everything scales with the premium: Rs. 25,000 a year buys roughly half the sum assured and half the payout, and Rs. 100,000 roughly double, apart from the policy fee. Try your own figures in the profit calculator.
If paying for 20 years is the worry, Golden Endowment asks for premiums for 7 years and keeps earning bonus for 20, at a higher yearly premium for the same cover. See how the savings plans compare.
See these numbers for your own age and budget
A free illustration, year by year, from an authorized State Life advisor. No obligation — and you can ask us anything on WhatsApp.
Questions people ask
- How much will I get if I pay Rs. 50,000 a year for 20 years in State Life?
- Starting at age 30 on the Endowment Plan, about Rs. 4,337,837 at maturity if the 2025 bonus rates were declared every year, for Rs. 10 lakh paid in. Only the sum assured (about Rs. 1,043,000) and bonuses already declared are guaranteed. Your exact figure depends on your age and the policy fee.
- Can I pay monthly instead of yearly?
- Yes. State Life accepts yearly, half-yearly, quarterly or monthly premiums. Your illustration shows the exact instalment for the mode you choose.
- Is the payout guaranteed?
- The sum assured is guaranteed, and so is each bonus once State Life declares it. Bonuses for future years are not, so the final payout can be higher or lower than any illustration.
- Do I get a terminal bonus on this plan?
- Yes, if all 20 premiums are paid: at the 2026 rate, Rs. 900 per 1,000 of sum assured, for the 10 years of premiums beyond the 10th.
- What is the oldest age I can start a 20-year Endowment?
- The Endowment Plan accepts entry up to 65, but must mature by 75, so a 20-year term has to start by 55.
Plans in this guide
Keep reading
Sources
StateLife Advisors is an independent agency authorized to sell State Life products; this is not the official State Life website. Product facts and bonus rates are as published by State Life Insurance Corporation of Pakistan. Sum assured and declared bonuses are guaranteed by the Government of Pakistan; future bonus rates are not. This is general information, not religious, legal, tax or personal investment advice.