Research Analyst
Sep 19 - 25, 2011

Life insurance business in Pakistan was nationalized during March 1972. Initially, life insurance business of 32 insurance companies was merged and placed under three beema units named "A", "B" and "C" beema units. However, later these beema units were merged and effective in 1972 the management of the life insurance business was consolidated and entrusted to the State Life Insurance Corporation (SLIC) of Pakistan.


2006 13,112.0 2,879.6 14,923.8
2007 15,907.1 2,809.6 17,505.2
2008 19,152.1 3,543.2 19,134.6
2009 24,853.2 3,513.7 21,544.7
2010 31,934.0 3,705.3 27,434.1

SLIC is headed by a chairman and assisted by the executive directors appointed by federal government. Up to July 2000, the corporation was run by board of directors constituted under life insurance (nationalization) Order 1972. In July 2000, under insurance ordinance 2000, the federal government reconstituted the board of directors of state life which runs the affair of this corporation.

The basic structure of the corporation consists of four regional offices, 26 zonal offices, a few sub-zonal offices, 111 sector offices, and a network of 461 area offices across the country for individual life insurance; four zonal offices and six sector offices with 20 sector heads for group and pension are involved in the marketing of life insurance plans policies and products offered by the State Life and a principal office. The principal office, based at Karachi, is responsible for corporate activities such as investment, real estate, actuarial, overseas operations, etc.


This life assurance is a unique combination of protection and savings at a very economical premium. Death at any time before age 85 years terminates payment of premiums and the sum insured and attached bonuses become payable. In the event the insured survives to the policy anniversary at age 85 years, the policy matures and the sum insured plus bonuses become payable. Under this plan, the rates of bonuses are usually much higher than the other plans and they help in increasing not only protection but also the investment element of the policy substantially. This plan is best suited for youngsters who have at initial stages of their careers and cannot afford to pay high premiums. Individuals who anticipate requirement of a lump sum in future can also subscribe to this plan.


It's a safest and surest method of guaranteed cash provision either at a specified time or at death. Under these policies, the sum insured plus bonuses are payable at the end of the specified number of years or at death of the life insured if earlier. Premiums are payable for the specified number of years or till death, if earlier. The benefits under the plan can be further increased by attaching supplementary covers. The plan serves the requirements of a family in various shapes by way of financial help at retirement, education of children or provision of capital for business.


Child education and marriage assurance is a plan for the protection of child's future. It provides a lump sum benefit for the child at the completion of the policy term. On completion of term of the policy, full sum insured together with the accrued bonuses become payable to the policyholders. Future premiums under the policy are waived and policy remains in force with full sum insured and continues to participate in State life's surplus and receive bonuses. Upon the completion of policy term, the child gets two options of either getting the proceeds in a lump sum or in five equal installments.


Sunehri Policy is an innovative life insurance product. It is flexible, secure and meets the challenges of inflation quite economically. Under a special feature of this plan, from third policy year onwards, sum insured under the policy and premium will increase by six per cent per annum without providing any evidence of insurability. From the third policy year onward, the policyholder is provided with a statement showing the buildup of cash value of the policy and sum insured for the year.


This plan provides term insurance cover for a period ranging from 5 to 10 years. As the name suggests, this plan is meant to provide protection during the term of the policy only i.e. sum insured is payable on death if it occurs during the term of insurance while the policy is in force. The plan does not carry any survival benefits, maturity benefits, surrender values, loan values etc. The policies will be without profits. Furthermore, the plan is available in two versions: single premium and annual premium.


SLIC has been serving the community with a zeal for last many years. It is also providing employments and sources of earnings to many people. Though life insurance sector has to go a long way to come at par with its other peer financial institutions, yet a company of that ilk is supporting life insurance to grow and secure future of the community.