State Life terminal bonus explained: who gets it, and how much
Most people know a State Life plan earns a bonus every year. Fewer know about the second bonus, paid once, right at the end, which at today's rates makes up about 22% of a 20-year plan's final cheque. It is called the terminal bonus. Here is exactly how it is worked out, which plans get it, and what it means when you choose a payment term.
In short
- The terminal bonus is a one-off extra paid with a maturity or death claim, on top of the yearly bonuses.
- For claims in 2026 it is Rs. 90 per Rs. 1,000 of sum assured for each year's premium paid beyond the 10th, up to Rs. 1,800 per 1,000.
- A plan paid for 10 years or less gets none, which includes Golden Endowment (7 years of premiums) and Platinum Plus (3).
- On a 20-year Endowment it adds Rs. 900,000 to every Rs. 10 lakh of cover. Like every future bonus, the rate is not guaranteed.
Two bonuses, paid at different times
A State Life with-profits policy can earn two kinds of bonus. The **reversionary bonus** is declared every year as so many rupees per Rs. 1,000 of sum assured, and is added to your policy, where it stays: once declared it is guaranteed by the Government of Pakistan. See how the yearly profit adds up.
The **terminal bonus** works differently. It is not added year by year. State Life declares a rate for the claims it will pay in the coming year, and it is paid once, when the policy ends in a maturity or death claim. The declaration made after the valuation of 31 December 2025 sets the rate for claims paid in 2026.
How it is worked out
Count the years of premiums paid. Take away 10. Multiply what is left by Rs. 90, and stop at Rs. 1,800. That is the terminal bonus per Rs. 1,000 of sum assured.
The test is **years of premiums paid**, not how long the policy lasts. That is why Golden Endowment, which runs for 20 years but is paid for only 7, earns no terminal bonus, and why only a plan paid for 30 years or more reaches the cap.
Which plans get it
- Endowment Plan on any term over 10 years, because premiums are paid for the whole term. This is the plan where it matters most.
- Other with-profits plans whose premiums run for more than 10 years, such as the Child Education & Marriage Plan and Jeevan Saathi on longer terms.
- Not Golden Endowment or Platinum Plus: their premiums stop after 7 and 3 years. Platinum Plus makes up for it with higher yearly bonus rates.
- Not Family Pension Plan: State Life excludes Anticipated Endowment plans from the terminal bonus.
How much of the final payout it is
The longer the plan, the bigger the terminal bonus, both in rupees and as a share of what you receive: about 17% of the illustrated payout on a 15-year plan, rising to about 26% on a 30-year plan.
On a death claim
The declaration applies to death claims as well as maturities, and its wording counts the years of premiums actually paid. On that reading, a policyholder who dies in the 15th year of a 20-year plan, with 15 premiums paid, would qualify for Rs. 450 per 1,000 at the 2026 rate, on top of the sum assured and the yearly bonuses already added.
What it means when you choose a plan
- If you can commit to paying for more than 10 years, every extra year of premiums adds to the terminal bonus, as well as reaching the higher yearly bonus rates from year 6 and year 17.
- Choosing between a 10-year and a longer term? At 10 years of premiums the terminal bonus is nil; it starts with the 11th.
- It is paid with a maturity or death claim. A surrender is neither, so a policy cashed in early gives it up. See what a surrender pays.
- The rate is declared each year for the following year's claims. Rs. 90 is the 2026 rate; the rate when your own policy matures may be higher or lower.
- Try your own numbers in the profit calculator, which includes the terminal bonus.
Key terms
- Reversionary bonus
- The yearly bonus, declared per Rs. 1,000 of sum assured and added to the policy for good.
- Terminal bonus
- A one-off bonus paid with a maturity or death claim, for each year of premiums beyond the 10th.
- Premium-paying term
- The number of years you pay premiums. It can be shorter than the policy term, as on Golden Endowment.
- Anticipated Endowment
- A plan that pays part of the sum assured during the term, such as Family Pension Plan. It gets no terminal bonus.
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
- What is the State Life terminal bonus for 2026?
- Rs. 90 per Rs. 1,000 of sum assured for each year's premium paid beyond the 10th, up to Rs. 1,800 per 1,000, on maturity and death claims paid in 2026.
- How much terminal bonus will a 20-year plan get?
- At the 2026 rate, Rs. 900 per 1,000 of sum assured: Rs. 900,000 on Rs. 10 lakh of cover. The rate when your plan matures may differ.
- Does Golden Endowment get a terminal bonus?
- No. Its premiums are paid for 7 years, and the terminal bonus starts only with the 11th year of premiums. It earns the yearly bonus for all 20 years of the plan.
- Is the terminal bonus guaranteed?
- No. Yearly bonuses become guaranteed once declared and added to your policy. The terminal bonus is declared for each year's claims and is only paid with the claim itself.
- Do I get the terminal bonus if I surrender?
- It is declared for maturity and death claims. A surrender is neither, so expect it to be lost if you cash in early.
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.