Endowment Plan

Official name: Endowment Plan (Table‑03)

Save a fixed amount every year for a term you choose, from 10 to 55 years. If you live to the end, you get your sum assured — the amount you chose to be insured for — plus every yearly bonus added along the way. If you pass away before that, your family gets the same.

✓Pay for a term you choose, from 10 to 55 years
✓At the end: your sum assured plus all yearly bonuses
✓If you pass away earlier: your family gets the sum assured plus bonuses

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In simple words

How it works

You choose
Pay for 10 to 55 years
Pay a fixed amount every year (or monthly) for the term you pick.
Every year
Bonus added
State Life adds a bonus every year, and the rate steps up after year 5 and again after year 16.
At the end
You get a lump sum
The sum assured plus all bonuses — and an extra end-of-plan bonus if you paid for more than 10 years. If you pass away first, your family gets it.

Who it’s for

Is this plan for you?

You want a simple, disciplined way to save for your children's education, a home or retirement.
You want your family protected while you save, without buying a separate policy.
You want a plan State Life has run for decades, backed by the Government of Pakistan.

₨Lump sum at the endSum assured plus every yearly bonus, paid when the plan ends.

⌂Family protectedIf you pass away during the plan, your family receives the sum assured plus bonuses so far.

↔Money when you need itAfter 3 years of premiums you can borrow up to 80% of the policy's cash value.

✓Government-backedSum assured and declared bonuses guaranteed by the Government of Pakistan.

Key facts

Plan type: Savings plan with life cover, sharing in 97.5% of State Life's profit
Entry age: 10 – 65 years
Policy term: 10 – 55 years (maximum maturity age 75)
At the end: Sum assured + all bonuses added
If you pass away: Sum assured + bonuses so far, paid to your family
Yearly bonus: Declared every year; once added, guaranteed by the Government of Pakistan
Grace period: 31 days to pay after each premium falls due
Medical check: Standard State Life underwriting — depends on your age and the amount

Optional extras (riders) you can add: Accidental Death Benefit (extra payout equal to the sum assured if death is caused by an accident), Term Insurance Rider (extra life cover equal to the sum assured), Accidental Indemnity Benefit (payments for accidental death, loss of limbs or sight, and injury), Family Income Benefit (a yearly income of 10%–50% of the sum assured to your family), Waiver of Premium and Special Waiver of Premium (premiums waived if you become disabled), Guaranteed Insurability (buy more cover later without a medical), Hospital & Surgical (hospital costs at State Life approved hospitals), Refund of Premium Rider (premiums paid returned on death).

Need money during the plan? After 3 years' premiums, borrow up to 80% of the policy's net surrender value (its cash value).

Cashing in early: You can cash in (surrender) the policy once 2 years' premiums have been paid.

Changed your mind? You have 14 days after the policy starts to cancel it and get your premium back (the “free-look” period, subject to State Life terms).

Read the full official product page on statelife.com.pk

A real example

STATE LIFE EXAMPLE · 2022 BONUS RATES

Age40 yrs

YearlyRs. 251,150

Term20 yrs

State Life's own example: a 40-year-old picks a Rs. 5,000,000 sum assured for 20 years and pays Rs. 251,150 a year — about Rs. 5 million in total. At 50 he borrows about Rs. 3.1 million (80% of the cash value) for his son's studies abroad and repays it by 55. At 60 the plan pays out about Rs. 17.8 million.

Indicative and for illustration only. Past performance is not a guide to future performance. Your advisor will provide a personalised illustration; full terms are in the policy document.

Work out your own payout with the profit calculator

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Full details from State Life

Everything State Life publishes about the Endowment Plan

The Endowment Plan (Table-03) is a savings and protection plan. The policyholder receives the complete sum assured plus full-term bonuses at maturity, or on earlier death.

State Life aims to give its policyholders complete satisfaction, from issuing the policy through after-sales service, and the sum assured and declared bonuses payable on maturity or death are guaranteed by the Government of Pakistan.

What needs it meets

To make sure your immediate family has financial support in the event of your death.
To finance your children’s education and other needs.
To have a savings plan, so that you have a source of income after retirement.
To provide for other financial contingencies and lifestyle requirements.
To create a supplemental source of income for your loved ones.
To provide life cover along with a way to build a financially secure future.
The benefits can be increased further by attaching supplementary contracts.

Plan features, payments and payouts

Plan type: Endowment with surplus participation of 97.5%
Age at entry: 10 – 65 years
Term: 10 – 55 years. Maximum maturity age 75.
Bonus participation: State Life announces a bonus every year according to its actuarial valuation, and 97.5% of its surplus is distributed as bonuses to all with-profit policies. The bonuses declared by State Life are guaranteed by the Government of Pakistan.
Where the funds are invested: State Life has a comprehensive investment policy and invests its funds in government securities, blue-chip equities, banks and similar avenues.
Death benefit: Basic sum assured plus accrued bonuses, payable on death (God forbid).
Surrender / early withdrawal: The policyholder can surrender the policy after 2 years’ premiums have been paid.
Maturity benefit: Basic sum assured plus accrued bonuses, payable if the insured survives to the maturity date.
Loan facility: After the third premium has been paid, the policyholder can take a loan of up to 80% of the net surrender value of the policy if they need money.
Free-look period: The policy can be cancelled at the option of the policyholder within 14 days of its commencement date.
Grace period: Premiums can be paid to State Life within a grace period of 31 days after they fall due.
Underwriting: The plan is subject to underwriting as per the standard practice of State Life.

Optional add-ons (riders)9 supplementary contracts you can attach

Accidental Death Benefit (ADB): If this supplementary contract is taken, an amount equal to the basic sum assured becomes payable on accidental death (God forbid) during the term of the policy.
Term Insurance Rider (TIR): If this supplementary contract is taken, an amount equal to the basic sum assured becomes payable on death (God forbid) during the term of the contract.
Accidental Indemnity Benefit (AIB): If this supplementary contract is taken, an amount equal to the basic sum assured becomes payable on accidental death (God forbid) during the term of the policy. A proportionate amount of the sum assured is payable for the loss of two or more limbs or the loss of sight in both eyes. For other injuries, weekly indemnities are paid for total or partial disability, followed by an annuity payable for up to 10 years.
Family Income Benefit (FIB): If this supplementary contract is taken, an annuity of 10% to 50% a year of the basic sum assured is payable on death (God forbid) during the term of the contract, until the rider expires.
Waiver of Premium (WP): If this supplementary contract is taken, the premiums on the policy are waived on total or permanent disability caused by an accident.
Special Waiver of Premium (SWP): If this supplementary contract is taken, the premiums on the policy are waived during total or permanent disability that leaves the insured unable to engage in any occupation.
Guaranteed Insurability: If this supplementary contract is taken, State Life gives the right to buy additional life insurance, up to specified maximum amounts on specified future dates, at standard rates and without evidence of insurability at those later dates.
Hospital and Surgical (H&S): If this supplementary contract is taken, it pays benefits for hospitalisation in State Life’s approved hospitals as a result of sickness or accident.
Refund of Premium Rider (RPR): If this supplementary contract is taken, the premiums paid are refunded on death (God forbid) during the term of the contract.

Sample premium rates for a 20-year termWhat the plan costs per Rs. 1,000 of cover

Rupees per Rs. 1,000 of sum assured, per year
Age	Main plan	FIB add-on	ADB add-on
10	47.54	–	–
15	47.59	–	–
20	47.73	3.07	1.25
25	47.99	3.56	1.25
30	48.42	4.37	1.25
35	49.20	5.86	1.25
40	50.71	8.70	1.25
45	53.47	13.95	–
50	58.13	–	–
55	65.27	–	–

How to read it: at age 30, a Rs. 1,000,000 sum assured costs 48.42 × 1,000 = Rs. 48,420 a year for the main plan, less a Rs. 500 rebate, plus the policy fee.

For rates specific to your age and term, please contact our representative.
A policy fee is applicable on the premium.
A rebate of 0.5 (per Rs. 1,000 sum assured) applies to the main plan premium for a sum assured of Rs. 300,000 or more.

State Life’s worked examplesState Life’s own examples, based on its 2022 bonus rates. Future bonuses are not guaranteed.

Mr. Ahmed — saving for his children’s studies and his retirement

Age at issue: 40
Sum assured: Rs. 5,000,000
Term: 20 years
Yearly premium: Rs. 251,150
Total premium payable: Rs. 5,023,000

A salaried employee of a private company saving for his children’s higher education and his retirement.
At 50, when his son plans to study abroad, he takes a loan of 80% of the cash value — about Rs. 3.1 million, almost 1.24 times the premiums he paid over those 10 years. He repays the loan by 55.
At 60, after 20 years, he receives about Rs. 17.8 million at maturity — almost 4 times the premiums he paid.

Mr. Ali — a young entrepreneur saving for business and marriage

Age at issue: 20
Sum assured: Rs. 1,000,000
Term: 10 years
Yearly premium: Rs. 98,640
Total premium payable: Rs. 986,400

He has run a start-up since 18 and saves for business expansion and his wedding.
After 5 years he takes a loan of 80% of the cash value — about Rs. 3.5 lac — to open a new office and stock inventory for a large order, and repays it in 2 years.
At 30, when the policy ends, he gets married and receives about Rs. 1.4 million — about 1.4 times what he paid in just 10 years.

Ayesha — a single mother protecting her children

Age at issue: 30
Sum assured: Rs. 2,000,000
Term: 20 years
Yearly premium (with ADB and FIB): Rs. 106,020
Total premium payable: Rs. 2,120,400

A salaried single mother investing for her children’s future and her family’s protection.
She dies in an accident in the 4th year of the policy. Her children receive the Accidental Death Benefit (ADB) along with the main plan benefits, and a proportionate amount of the sum assured under the Family Income Benefit (FIB) — about Rs. 4.4 million in total, 10 times what she had paid.
Her children also receive a yearly income of Rs. 200,000 (10% of the sum assured) on each policy anniversary for the rest of the policy term, which State Life will also increase.

General policy questionsClaims, loans, lapse and revival, nominations and more

To whom is a death claim payable?

Usually to the nominee, the assignee or the legal successor, as the case may be. If the policyholder did not nominate or assign the policy, or make a will, the claim is payable to the holder of a succession certificate or other evidence of title from a court of law.

What is a bonus?

State Life distributes its profits among its policyholders every year in the form of bonuses. Bonuses are credited to the policyholder’s account and paid at maturity, or on death if earlier. A bonus is declared as a certain amount per thousand of sum assured.

What are the medical and non-medical schemes?

Life insurance is normally offered after a medical examination of the person to be insured. To spread insurance more widely, and as a relaxation, State Life also offers cover without any medical examination, subject to certain conditions. This is called the non-medical scheme.

What is underwriting?

Underwriting means considering the material facts about a risk to decide whether to accept it and, if so, at what rate of premium.

What is surrender value?

The amount State Life pays if the policyholder chooses to end the policy before the end of its term.

Can a life insurance policy be sold?

No, a life insurance policy cannot be sold to raise money. It can, however, be assigned or mortgaged, provided it has been in force for a minimum stipulated period.

How are premiums on life policies calculated?

Mainly from the age of the person to be insured, the type of policy, the sum insured and the term of the policy.

What is the procedure to get a loan?

Apply on State Life’s prescribed loan form and submit it, duly completed, with the policy document.

How do I repay the loan?

The loan can be repaid in part or in full at any time during the term of the policy.

What are the automatic non-forfeiture options?

If the policy has acquired a surrender value and a premium stays unpaid beyond the grace period, the policyholder gets one of two options, depending on the choice made (if any) in the proposal. (A) Automatic paid-up: the policy becomes a paid-up policy, with the paid-up sum insured calculated to clear all of State Life’s outstanding dues against the policy. (B) Automatic premium loan: as long as the net surrender value is at least equal to the unpaid premium, State Life keeps the policy in full force and treats the premium as paid by creating an automatic premium loan against the net surrender value.

This product is underwritten by State Life Insurance Corporation of Pakistan. The past performance of State Life is not necessarily a guide to future performance. A personalised illustration of benefits will be provided by our representative; please read the notes in the illustration for the detailed terms and conditions. How the contract works is described in the policy privileges and conditions. This summary gives only a general outline of the product’s features and benefits, and the figures are indicative and for illustration only. Source: State Life official product page, checked 6 October 2026.

Government guaranteeYour cover and every bonus already declared are guaranteed by the Government of Pakistan.
You pay State Life directlyPremiums go to State Life Insurance Corporation, with an official State Life receipt every time.
Free adviceWe are an authorized State Life agency. Advice and your plan illustration are free, with no obligation.

Questions about this plan

It combines savings with life cover: your family receives the full sum assured plus bonuses even if you pass away early in the term.

The amount you choose to be insured for. Your premium is worked out from it, your age and the term, and bonuses are added on top of it every year.

Every year State Life shares 97.5% of its surplus (profit) with policyholders as bonuses. Once a bonus is added to your policy it is guaranteed by the Government of Pakistan; future bonus rates are not.

You have a 31-day grace period after each due date to pay.

After 2 years' premiums you can cash in (surrender) the policy. After 3 years' premiums you can instead borrow up to 80% of its cash value and keep the policy running.

Yes — yearly, half-yearly, quarterly and monthly modes are available.

Yes — within 14 days of the policy starting.