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state life bonus rates 2018

state life bonus rates 2018

BONUS DECLARATION ON PAKISTAN RUPEE POLICIES FOR THE YEAR 2018 The following Bonuses for Pakistan Rupee Policies are hereby declared on the basis of Actuarial Valuation as at 31″ Dec 2018.

1. Whole Life and Endowment Assurance

Subject to the notes below for with profit Whole Life & Endowment Policies in force for the full Sum Assured as at 31 December 2018.

Reversionary bonuses per thousand sumassured per annum.

state life bonus rates 2018

  PLAN / TERMS                                       2018
                    For first five policy years From 6th policy year to 16th policy year      From 17th policy years onwards                                   
      Rs.    Rs.   Rs.
Whole life      48     99      150
Endowment 20 years and over    
15 to 19 years inclusive     14 years and less  
         40           27             16          84         72            59          130            81                –

Notes: (a) Jeevan Sathi and Shadabad policies will be treated

dabad policies will be treated as Endowment policies.

(b) Big Deal policies will receive reversionary bonus

ucies will receive reversionary bonus on 25% of the sum assured only.

nole Life by limited payments bonuses will be allowed at the same rate

10 Lue. The bonuses are admissible even after the completion of premium paying period for each vear the policy has been in force for full sum assured

(ii) Interim Bonus will be allowed till the next Actuarial Valuation at the rates

state life bonus rates 2018

mentioned in I (i) above, subject to provisions of Section No. 11 below.

(111) Terminal Bonus will be paid on claims by death or maturity in 2019, Where more

than 10 years premiums have been paid. The rate will be Rs.60 per thousand Sum Assured for each year’s premium paid in excess of 10 years subject to a maximum of Rs. 1,200 per thousand sum assured.

(iv) Special Terminal Bonus will be paid on claims by maturity in 2019, where a Family

Income Benefit (FIB) is in force at maturity as a supplementary contract, or as a built-in benefit, and has been in force for more than 10 years. The rate will be Rs.10 per thousand basic sum assured under the policy for each year in excess of 10 years that the FIB has been in force, subject to a maximum of Rs.200 per thousand basic sum assured

(v) Loyalty Terminal Eonus will be paid to those policies, which have been with State

Life since 1999 or earlier. Loyalty Terminal Bonus of Rs.200 per thousand sum assured will be paid on claims by death or maturity in 2019 to policies with risk year 1999 or earlier.

state life bonus rates 2018

2.Anticipated Endowment Assurance

For with profits Anticipated Endowments/Three Stage/Three Payment policies (excluding Sada Bahar Plan) in force for the full sum assured as at 31 December 2018.

(1) Reversionary bonuses per thousand sum assured per annum would be as per the

following schedule:

      TERM                                2018
For first five policy years From 6th policy year to 16 th policy year From 17th policy year onwards
  Rs.        Rs.     Rs.
20 years and over   15 to 19 years inclusive   14 years and less      27         19          15         62            53             47        100          59            –

will be allowed until the next Actuarial Valuation at the rates mention in 2(i) above, subject to the provisions of Sectic

(iii)

Terminal Bonus will not be paid on these policies.

(iv)

Special Terminal Bonus as mentioned in 1(iv) above will be paid on cases having Family Income Benefit supplementary contract. The Special Terminal Bonus will be calculated on the basic sum assured under the policy, and not on the residual survival benefit.

Loyalty Terminal Bonus as mentioned in 1 (v) above, will be paid to policies with risk year 1999 or earlier. The Loyalty Terminal bonus will be calculated on the basic sum assured under the policy, and not on the residual survival benefit.

(vi)

Special Reversionary Bonus: If the policyholder lets a Survival Benefit remain with State Life, a Special Reversionary Bonus will be added six months after the due date of the Survival Benefit. For Survival Benefits falling due in 2019, which the policyholder opts to leave, Special Reversionary Bonuses will be allowed as follows.

Periods between survival benefit due date and maturity date Special reversionary bonus per Rs. 1000 survival benefit Periods between survival benefit due date and maturity date Special reversionary bonus  per Rs.1000 survival benefit
20 years Rs. 3,165 9 years Rs 1,005
18 years Rs. 2,765 8 years Rs. 845
16 years Rs. 2,350 7 years Rs. 695
14 years Rs. 1,940 6 years Rs. 555
12 years Rs.1,545 5 years Rs. 420
10 years Rs.1,175 4 years Rs.300

Note: Policies under Family Pension

Special Reversionary Bonuses.

nsion Plan (Table 12) will not be eligible for

3. Sada-Bahar Plan (Table 74).

For policies in force for the full cum occured as at 31″ December 2010.

(1)

Reversionary bonuses per thousand sum assured per annum would be as per following schedule.

          TERM                            2018           
For first five policyear From 6th policy year to 16th policy year
            Rs              Rs.
  20  years and over   15 to 19 years inclusive   14 years and less             35           35           24                    77                  66                   59   

(ii) Interim Bonus will be allowed till the next Actuarial Valuation at the rates

mentioned in 3 (1) above, subject to provision of Section no. 11 below.

(ii) Special reversionary bonus, will also be paid to all policies under this plan whose

survival Benefits have fallen due in 2019 subject to the rates and conditions – mentioned in 2 (vi) above.

4. Super (Table 72), Sunehri (Table 73) & Shehnai (Table 77) policies

Bonuses under these policies are credited to the policy after the policy has acquired an Adjusted Opening Cash Value. The bonus is credited on the Adjusted Opening Cash Value and not on minimum guaranteed surrender value. Bonuses will be credited at the end of the policy year. These bonuses are payable when the Cash Value under the policy is payable.

(ü) The rate of bonus is Rs.85 per thousand per annum of the Adjusted Opening Caslı

Value. This bonus rate will be allowed till the next Actuarial valuation.

(i) Reversionary, Terminal or any other bonus declared as a result of this valuation will

not be payable under these policies. However, bonus mentioned under 8 below, if applicable, will be allowed.

5. Committee Policy (Table-79)

Investment Return under this policy is credited to the

nder this policy is credited to the policy after the policy has acquired an Adjusted Opening Cash Value. The retum

tea Opening Cash Value The return is credited on the Adjusted Opening cash Value and not on minimum guarantee

a not on minimum guaranteed surrender value. This return will be credited at the end of each quarter. These retums

a of each quarter. These returns are payable when the Cash Value under the policy is payable.

The credit rate for each quarter falling due in 2019 sh

each quarter falling due in 2019 shall be calculated at 7.00%

the Adjusted Opening Cash Value. This rate will be allowed till the next Actuarial Valuation.

annu

(111)

Reversionary, terminal or any other bonus declared as a result of this valuation will not be payable under these policies.

6. Personal Pension Scheme (Table 71)

(1)

Bonuses under Personal Pension Scheme where “Pension is being paid will be allowed on Pension Payments. Pension payments will be increased by bonus frcm the policy anniversary falling in the year 2019. This increase will also be available on pension payments commencing in 2019.

– (ii) The rate of bonus is Rs.80 per thousand per annum of the pension payments.

(iii) Reversionary, Terminal or any other bonuses declared as a result of this valuation,

will not be payable under these policies.

7. Specified Major Surgical Benefit

Specified Major Surgical Benefit was announced for the first time in 1992 valuation. This benefit has been reta ned in 2018 valuation. This benefit is available to all with-profit policies, which have been in full force as at 31s December 2018 and have been continuously in force for at least five complete policy years at the date of surgery. The maximum benefit for such policies is Rs. 250.000. However, if the with-profit policies have been in full force as at 31″ December 2018 and have been continuously in force for at least ten complete policy years at the date of surgery then the maximum benefit for these policies will be Rs.500,000.

Under such policies, if the life assured undergoes specified major surgery during the inter-valuation period i.e. from 1″ January 2019 to 31st Deco account of a specified dread disease, the Corporation would pay 50% of the basic sum assured (in case of Anticipated Endowment plans, 50% of the remain ng sum

deducting any due survival benefit(s)). subject to above given assured after deducting any due survival benefit(s)) maximum amounts. The amount payable will be adjusted against future survival benefit payments, maturity or death claims. Details are given in Annexure “A”

(iii)

For the method of calculating surrender value of a policy after specified major surgical benefits has been paid, please refer to section 6 of the “Annexure A”.

8. Family Income Benefits in course of payment (whe

se of payment (where the life assured has died

Family Income Benefit to heirs or nominees of decease

to heirs or nominee of deceased life assureds will be increased from policy anniversaries in the year 2020 under with profit pe

year 2020 under with profit policies as follows:

Years of life insured death Increase
2018 or earlier 7.5%
2019 NIL

Notes:

The percentage increase will be allowed on the actual benefit paid on policy anniversaries (including any prior increases) in the year 2019.

Above increase will be applicable on the policies where family income benefit was attached as supplementary contract or as a built-in benefit.

9. Terminal Loyalty Terminal Bonus for Paid-up Policies

Paid-up policies (Whole Life & Endowment) terminating by way of death or maturity in 2019 will get Terminal bonus subject to terms mentioned below:

a) The policy has been on the books for more than ten years.

b) The rate will be Rs. 60/- per thousand paid-up sum assured for each year in

excess of ten years subject to the maximum of Rs. 1200/- per thousand paid-up sum assured.

(ii)

The Terminal Bonus mentioned in 9 (i) above will also be paid to the anticipated endowment paid-up policies terminating by way of death only in 2019. No terminal bonus will be paid to anticipated endowment policies terminating by way of maturity in 2019.

(iii)

Loyalty Terminal Bonus of Rs. 200/- per thousand paid-up sum assured as mentioned in 1(v) above will be paid to paid-up policies with the risk year 1999 or earlier..’

(iv)

Loyalty Terminal bonus, as mentioned in 9 (iii) above will also be paid to Anticipated Endowment paid-up policies on claims by death or maturity in 2019.

Note: Bonus for Paid-up policies will be calculated on the Paid-up sum assured and not

on the basic sum assured.

10. East West Mutual etc.

Policies issued by the East West Mutual, Gran

ne East West Mutual. Grand Mutual, LG.I., Pakistan Mutual Standard and Union Insurance and former East Pakis

er East Pakistani companies will not get wa bonuses, Special Termine Bonuses, Loyalty Terminal Bonuses and Specified Major Surgical Benefit.

11. NO SURRENDER VALUE OR BONUSES UNTIL THREE YEARS’

PREMIUMS HAVE BEEN PAID

The Surrender Value of bonuses will be payable on an in force policy if at least one of the following two conditions has been fulfilled:

mums

The policyholder has actually paid at least three The policy has completed at least three policy years.

However, in case of a death claim or Single Premium policies, this condition will be waived and all bonuses whether declared or interim will be payable. Also, in the case of a death claim in the first three policy years, where the premiums are in arrears, in order to determine whether the policy could have been kept in force, cash value of bonuses will be taken into account.

“Actual payment” means payınent in cash/pay order/bank draft/cheque after it has been realized.

Caution:

Terminal and Special Terminal Bonus, Loyalty Terminal and specified major surgical benefits are especially sensitive to the future surplus of State Life. Hence, no indication can or should be given of Terminal, Special Terminal, Loyalty Terminal bonuses and specified major surgical benefits (if any) which may be allowed after the year 2019,

General Notes:

a)

If a policy was in force as at December 31″ 2018 for full Sum Assured and Death or Maturity claim has been settled between January 15 2019 and the date of receipt of this circular, then the difference in claim proceeds, if any, taking into account bonus rates mentioned in the circular will be paid. For this purpose, a nicely worded letter will be sent to the policy holder in cise of maturity or his/her nominee(s) in case of death claim, asking him/her to collect the amount from State Life office.

b)

If Death or Maturity occurred before Deceinber 31 2018 but the policy holder or his/her nominee(s), intimates State Life after December 31st 2018, the claim will be settled according to 2017 bonus rates and not according to 2018 bonus rates.

c)

If a policy becomes paid-up in 2018 und

der ANF option A, the Reversionary Bonuses are to be allowed upto 2017. Please mak

wed upto 2017 dicase make it clear that in such cases, Reversionary Bonuses declared in 2017 Actuarial valua

red in 2017 Actiol valuation would apply and NOT as declared in Actuarial valuation of 2018. Furthermore

more. if a claim arises under such policies in 2019 by way of Death/Maturite the Terminal Bonuses on all such policies will be paid in accordance with the Section 9 as stated

state life bonus rates 2018

the Section 9 as stated above. state life bonus rates 2018

d)

There will be No Cash Value of Terminal, Special Terminal and Loyalty Terminal Bonuses.

Please read the above details very carefully in allowing a

oove details very carefully in allowing different types of bonuses and make sure wat the officers and staff members dealing with maturity claims, death claims, surrenders, loans etc. are fully conversant with these conditions.

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