State Life Ins.

Child Education & Marriage Plan

Securing Your Child’s Future: Education, Marriage or Business — With Confidence

Plan Overview

The Child Education & Marriage Plan is a conventional, with-profits endowment policy designed to secure a child’s future needs — education, marriage, or starting a business — by providing a lump-sum benefit when the child reaches a predetermined age (typically 18, 21, or 25 years). The plan enables parents (or guardians) to systematically build a financial reserve over the policy term, with the assurance of life coverage and surplus participation under State Life.

Depending on the variant selected (with or without built-in Family Income Benefit), the policyholder may also provide for regular income to the child in the unfortunate event of the parent’s death.

This plan is suited for parents or guardians committed to long-term financial planning for their child’s major life milestones.

Why Choose the Child Education & Marriage Plan

This plan is tailored to meet the following parental and familial needs:

• Financial Security for Major Life Events: Ensures that funds will be available when your child needs them — for education, marriage, or launching a business.
• Protection in Case of Parent’s Death: In the event of the policyholder’s death, future premiums are waived, and the policy remains active — ensuring the child still receives the planned benefits.
• Savings With Flexibility: Combine disciplined savings with life coverage, allowing you to build a financial corpus without worrying about market volatility.
• Flexible Beneficiary Option: The plan can be taken by parents, guardians, grandparents, uncles/aunts — or any individual responsible for the child’s maintenance or upbringing.

Key Features and Benefits

1. Coverage and Eligibility

• Plan Type: Conventional, surplus-participating endowment plan.
• Entry Age: Child: 1 – 15 years; Payer (policyholder): 20 – 60 years.
• Policy Term / Maturity Age: Term ranges from 10 to 24 years, structured so that the benefit becomes payable when the child reaches age 18, 21, or 25. Maximum maturity age is 70 years (on nearest birthday basis).

2. Benefit Structure

Maturity Benefit (on survival till end of term):

• The child (or beneficiary) receives the Sum Assured plus all accrued bonuses under the plan.
• On maturity, the payment can be received as a lump sum or in five equal annual instalments, providing flexibility to manage expenses (e.g., education fees).

Death Benefit — If policyholder dies during the term:

• All future premiums are waived. The policy stays in force with full benefits intact and continues participation in surplus/bonuses.
• Optionally, under the variant with built-in Family Income Benefit (FIB), a regular income (e.g., at a rate per 1,000 of sum insured, as defined in policy terms) is paid annually to the child until policy maturity.

If the child dies (while the policyholder is alive):

• The policyholder may: continue the policy for another child; or get a refund of premiums paid till that point (or cash value, whichever is higher) and terminate the contract; or continue the policy without naming another child (in which case refund option may not be available).

3. Bonus / Surplus Participation

• The plan participates in the surplus profits of State Life. Historically, SLIC distributes 97.5% of surplus as bonuses to participating (with-profits) policies.
• Bonuses are declared periodically following actuarial valuation; final maturity or death benefit includes basic sum assured plus accrued bonuses, guaranteed under the arrangement with Government guarantee.

4. Policy Flexibility & Additional Features

• Surrender / Early Withdrawal: Policy acquires surrender value after at least two consecutive years, provided premiums are paid and not in default.
• Loan Facility: After payment of the third premium, a loan up to 80% of net surrender value may be available (subject to State Life’s rules).
• Free-Look Period: The policy may be cancelled within 14 days of issuance if the policyholder chooses not to proceed.
• Grace Period for Premiums: Standard grace period for premium payment as specified by State Life’s general terms.

5. Optional Riders / Supplementary Benefits

• Optional Riders / Supplementary Benefits: Additional riders (e.g., accident or supplementary insurance) may be attached, subject to underwriting and eligibility — to enhance protection.

Who Should Consider This Plan

• Parents or guardians intending to secure their child’s future financial needs — education, marriage, business startup.
• Families who want to ensure child’s welfare even in adverse events such as the untimely demise of a parent.
• Caregivers other than parents (grandparents, aunts, uncles, guardians) who are responsible for child maintenance and wish to provide long-term security.
• Individuals seeking a disciplined savings mechanism combined with life protection and bonus-cum-surplus participation

State Life Plans and Features

Plan Features	Description
Plan Type	Endowment with surplus participation of 97.5%
Minimum/Maximum Age at Entry	Child: 1-15 Years, Payer: 20-60 years
Minimum/Maximum term	10-24 Years, Max maturity age = 70 (term should be such that the benefit becomes payable when the child attains age of 18, 21 or 25 years)
Bonus participation	State Life announces a bonus every year according to its actuarial valuation and 97.5% of surplus is distributed as bonuses to all with-profit policies. The bonuses declared by State Life are guaranteed by the Government of Pakistan.
Where are the funds invested	State Life has a comprehensive investment policy and tactically invests its funds in Government Securities, Blue Chip Equities, Banks, etc.
Death Benefit	In case of payer’s death (God forbid), future premiums are waived and the policy continues to participate in SLIC surplus. Upon expiry, the child receives accrued bonuses over entire term and sum assured as a lump sum benefit or in five equal annual instalments. In case of child’s death (God forbid), policy holder has option to; 1. Continue the policy for another child 2. Get higher of refund of premium paid till death or the cash value of the policy and terminate the contract. 3. Continue the policy without naming another child (in which case the benefit of Refund of Premium as provided above under condition (2) will not be available).
Surrender/ Early Withdrawal	The policyholder has the option to surrender the policy after 2 years’ premium have been paid.
Maturity Benefit	Basic Sum Assured plus accrued Bonuses are payable upon survival of the policyholder on the maturity date.
Loan Facility	Under this plan, after the payment of third premium, if the policy holder immediately needs money, he/she can avail a maximum loan of 80% of the net surrender value of the policy.
Free-Look Period	The policy can be cancelled at the option of the policyholder within (14) fourteen days of its commencement date.
Grace period:	Policyholders can pay the premium to state life within a grace period of 31 days after it falls due.
Underwriting Requirements	The plan will be subject to underwriting as per standard practice of State Life
Add-Ons	Description
Accidental Death Benefit (ADB)	If this supplementary contract is availed, then on his/her accidental death (God forbid) during the term of policy, an amount equal to basic sum assured becomes payable.
Term Insurance Rider (TIR)	If this supplementary contract is availed, then on his/her death (God forbid) during the term of contract, an amount equal to basic sum assured becomes payable.
Accidental Indemnity Benefit (AIB)	If this supplementary contract is availed, then on his/her accidental death (God forbid) during the term of policy, an amount equal to basic sum assured becomes payable. Proportionate amount of sum assured is payable in the event of loss of two or more limbs or loss of sight in both eyes. For other injuries, weekly indemnities for total or partial disability are paid. Thereafter, an annuity will be payable upto maximum of 10 years.
Family Income Benefit (FIB)	If this supplementary contract is availed, then on his/her death (God forbid) during the term of contract, an annuity of 10% to 50% per annum of the basic sum assured is payable under the main policy till the expiry of rider.
Waiver of Premium (WP)	If this supplementary contract is availed, then on his/her total or permanent disability due to accident, the premium on the policy is waived.
Special Waiver of Premium (SWP)	If this supplementary contract is availed, then the premium on the policy to be waived during total or permanent disability when he/she is unable to engage in any occupation.

WP and SWP cannot be attached if AIB is also attached to the plan
Annual income under FIB cannot be less than 10% or more than 26% of the basic sum assured
No rider available on child’s life

Age	Main Plan Premium Rate (Rs 1000 Sum Cover)	Add-ons
Age	Main Plan Premium Rate (Rs 1000 Sum Cover)	ADB (Rs 1000 Sum Cover)
20	48.00	1.25
25	48.16	1.25
30	48.42	1.25
35	48.91	1.25
40	49.83	1.25
45	51.54	-
50	54.43	-

for rates specific to your age and term please contact our representative
policy fee will be applicable on premium
Rebate of 0.5 applicable on main plan premium for sum assured greater than equal to Rs. 300,000/-

Disclaimers

This product is underwritten by State Life Insurance Corporation of Pakistan. The past performance of State Life Insurance Corporation of Pakistan is not necessarily a guide to future performance. A personalized illustration of benefits will be provided to you by our representative. Please refer to the notes in the illustration for detailed understanding of the various terms and conditions. A description of how the contract works is given in the policy privileges and conditions. This products brochure only gives a general outline of the product features and benefits and the figures used above are indicative and for illustration purposes only.

Frequently Asked Questions

Death claim is usually payable to the nominee/ assignee or the legal successor, as the case may be. However, if the deceased policyholder has not nominated/ assigned the policy or not made a will, the claim is payable to the holder of a succession certificate or such evidence of title from a Court of Law.

State Life distributes its profits @ 97.5% (highest in the insurance industry) among it policyholders every year in the form of bonuses. Bonuses are credited to the account of the policyholders and paid at the time of maturity or at the time of death (if earlier). Bonus is declared as a certain amount per thousand of sum assured.

Life insurance is normally offered after a medical examination of the life to be insured. However, to facilitate greater spread of insurance and also as a measure of relaxation, State Life has been extending insurance cover without any medical examination, subject to certain conditions. This facility is called Non-medical Scheme.

Underwriting of a risk involves consideration of material facts on the basis of which a decision will be taken whether to accept the risk and if so at what rate of premium.

The amount payable by State Life on termination of the policy contract at the desire of the policyholder before the expiry of policy term is known as the surrender value of the policy.

It is not possible to raise money against your life insurance policy. However, there is a provision available by way of assignment or mortgaging the policy provided the policy has been in force for a minimum stipulated period.

The calculation of life insurance premiums is primarily based on age of the person to be insured, sum insured and term of the policy.

The policyholder has to apply for loan in a prescribed form and submit the policy document with the form duly completed.

A policyholder can repay the loan amount either in part or in full anytime during the term of the policy.

If 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:

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.

B – Automatic Premium Loan Option

So long as the net surrender value of the policy equals or exceeds any due premium remaining unpaid 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.

Child Education & Marriage Plan (Table 76)