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Golden Endowment Plan

Official name: Golden Endowment Plan (Table‑81)

Golden Endowment is a 20-year savings plan. You only pay premiums for 7 years. Your policy continues for 20 years and earns bonuses declared by State Life. At the end of the plan, you receive your Basic Sum Assured plus the bonuses added to your policy.

  • ✓Pay for only 7 years
  • ✓Covered and earning bonuses for 20 years
  • ✓At year 20: your sum assured plus all bonuses

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Plan: Golden Endowment Plan

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In simple words

How it works

  1. Years 1–7

    You pay

    You pay premiums for 7 years only, then stop.

  2. Years 1–20

    Bonus added every year

    Your cover continues and bonuses are added for the full 20 years.

  3. Year 20

    You collect

    The sum assured plus all bonuses. If you pass away first, your family gets it.

Who it’s for

Is this plan for you?

  • You earn well now and would rather finish paying in 7 years than spread it over 20.
  • You are building a fund for a big goal about 20 years away — children's education, a home or retirement.
  • You want your family protected for the full 20 years, not only while you pay.
7Only 7 years of premiumsPay for seven years, then no further premiums are due.
2020 years of coverLife cover and yearly bonuses carry on for the full 20 years.
₨Lump sum at year 20Sum assured plus every bonus added, paid when the plan ends.
✓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
20 – 55 years
Policy term
20 years
Premium term
7 years
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
Optional extras (riders) you can add: Accidental Death Benefit (ADB) — an extra payout equal to the sum assured if death is caused by an accident. Term Insurance Rider (TIR) — an extra payout equal to the sum assured on death during its term.
Need money during the plan? After the 3rd yearly premium, borrow up to 80% of the policy's net surrender value (its cash value); interest applies.
Cashing in early: You can cash in (surrender) the policy once it has run for 2 years in a row with no premium missed.
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
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Full details from State Life

Everything State Life publishes about the Golden Endowment Plan

The Golden Endowment Plan is a conventional, with-profits endowment policy for long-term financial security and disciplined saving. It gives 20 years of life cover, while premiums are payable for only the first 7 years.

Throughout the full term the policy shares in State Life’s declared bonuses, increasing its maturity and protection benefits. It suits people who want a balance of protection, structured savings and surplus-based returns.

What needs it meets

  • Long-term financial planning: build a meaningful reserve for goals such as education, a home or other major milestones.
  • Life protection: dependable cover for the full 20-year term, so your family is secure if the unforeseen happens.
  • Limited premium commitment: premiums for only 7 years, with long-term cover and no long-term payment obligation.
  • Wealth through bonuses: as a with-profits plan it shares in State Life’s surplus, which may increase the maturity value.
  • Who should consider it: people wanting a disciplined, limited-period savings plan, long-term family protection, cover without extended premium commitments, and a share in surplus with the potential for higher maturity payouts.

Plan features, payments and payouts

Plan type
Conventional endowment with surplus participation of 97.5%
Age at entry
20 – 55 years
Policy term
20 years
Premium payment term
7 years only
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. Eligible policies receive reversionary bonuses and, where applicable, terminal bonuses.
Where the funds are invested
Government securities, real estate rentals, blue-chip equities, banks and similar avenues.
Death benefit
Basic sum assured plus accrued bonuses, payable to the beneficiary on death (God forbid) during the term.
Surrender / early withdrawal
The policy acquires a surrender value after it has been in force for at least two consecutive years, provided no premiums are in default.
Maturity benefit
Basic sum assured plus all accrued bonuses declared during the policy period, payable if the insured survives to the maturity date.
Loan facility
After the third yearly premium has been paid, the policyholder can take a loan of up to 80% of the net surrender value of the policy, subject to State Life’s rules.
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)2 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.
Sample premium rates (paid for 7 years)What the plan costs per Rs. 1,000 of cover
Rupees per Rs. 1,000 of sum assured, per year
AgeMain planFIB add-on (20-year term)ADB add-on
20106.035.172.78
21106.075.402.78
22106.145.652.78
23106.205.942.78
24106.286.252.78
25106.356.602.78
26106.416.992.78
27106.517.432.78
28106.627.922.78
29106.728.482.78
30106.859.112.78
31106.999.832.78
32107.1310.642.78
33107.3211.562.78
34107.5012.602.78
35107.7313.782.78
36107.9915.102.78
37108.2816.582.78
38108.6118.232.78
39108.9720.062.78
40109.4122.062.78
41109.8724.25–
42110.4126.61–
43110.9829.17–
44111.6631.92–
45112.3834.86–
46113.2038.00–
47114.1041.34–
48115.1044.89–
49116.1948.64–
50117.3752.59–
51118.68––
52120.07––
53121.59––
54123.19––
55124.90––

How to read it: at age 35, a Rs. 1,000,000 sum assured costs 107.73 × 1,000 = Rs. 107,730 a year for the main plan, paid for 7 years.

  • These are State Life’s sample rates; your exact premium is confirmed in your personalised illustration.
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 nomination or assignment of a policy?

When the policy money becomes payable on the policyholder’s death, it can only be paid to the person legally entitled to give State Life a valid discharge. If the policy has a nominee, the claim is settled in the nominee’s favour; if it has been assigned, the assignee receives the claim. Assigning a policy automatically cancels the existing nomination, so when a policy is reassigned to the policyholder, a fresh nomination must be made.

How do I change my address or transfer my policy records?

Give notice of the change to the zonal office that services your policy. Policy records can be transferred from that zonal office to any other zonal office nearest to where you live. A correct address means better service and quicker settlement of claims.

When does a policy lapse?

When the premium is not paid within the days of grace after the due date. The grace period is one month for yearly, half-yearly and quarterly payment modes, and 15 days for the monthly mode.

Can a lapsed policy be revived, and for how long?

Yes. A lapsed policy can be revived during the lifetime of the insured, within 5 years from the due date of the first unpaid premium and before the maturity date. Revival is considered on a non-medical or medical basis, depending on the insured’s age at the time of revival and the sum to be revived.

Can a policy be altered?

The policy document is the evidence of the contract, so it can only be altered if both parties agree. Because insurance is a long-term contract, State Life permits some alterations, keeping in view the basic principles of insurance and administrative convenience. As a rule, no alterations are permitted within the first year from the commencement of the policy.

What happens if the policy document is lost?

Losing or destroying the policy document does not end State Life’s liability to pay. The claim or sum insured is paid after the claimant or policyholder gives an indemnity bond jointly with two sureties, and a policy can be surrendered even if the original document is lost. For a loan or a survival benefit, a duplicate policy is needed: State Life issues it after certain formalities, such as a newspaper advertisement, and a nominal fee.

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.

Is life insurance a saving instrument?

Life insurance is mainly considered a saving instrument rather than an investment avenue, because it promotes compulsory saving while protecting the policyholder’s family against the unforeseen. It is the only saving instrument that covers the life risk, and a loan can be taken against State Life policies.

How is a life insurance policy useful?

Planning for the financial consequences of a premature death is an essential part of every financial plan, because those consequences are usually too large to cover from your own resources. Life insurance is a contract in which the insured pays a premium in exchange for cover against specified losses, protecting the family against the premature death of the earner or their spouse. Planning should consider both short-term needs (such as medical expenses) and long-term needs (such as replacing income). Insurance works as a hedge rather than a true investment: it replaces uncertainty with certainty by transferring the risk from the insured to the insurer.

What loans are available against life insurance policies?

Loans are granted up to 80% of the surrender value for policies whose due premiums are fully paid. The rate of profit charged is 10% a year, compounded half-yearly.

Who is eligible for a policy loan?

Policyholders can take a loan on their policies, subject to State Life’s rules and regulations.

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.

What is the rate of interest on a policy loan?

State Life currently charges 10% interest on policy loans, payable half-yearly.

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 happens if the loan is not repaid?

If the loan is not repaid during the term of the policy, or before an early claim, the loan plus any profit is deducted from the claim money and the balance is paid to the claimant.

What is reinsurance?

Insurers spread risk by reinsuring the risks they have insured with other insurers.

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 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

The payment window. You pay premiums for only the first 7 years, while cover and bonuses continue for 20 years; the standard Endowment is paid throughout its term.

Nothing changes about your cover. The policy stays in force until year 20, keeps earning bonuses, and your family stays protected.

In government securities, rental property, blue-chip shares and banks, among others. 97.5% of the resulting surplus is shared with policyholders as bonuses.

Yes — the Takaful Golden Endowment Plan is the Shariah-compliant counterpart.

It depends on your age and the sum assured; we will confirm it in your free illustration.

Once a bonus is declared and added to your policy it is guaranteed by the Government of Pakistan; future bonus rates are not.

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