1. STATE LIFE INSURANCE CORPORATION OF PAKISTAN REFUND OF PREMIUM RIDER (RPR)

2. If the policy holder dies and the RPR contract in his policy is In-force. All the premiums paid under the policy (Including extra premiums for riders except RPR) will be refunded to the beneficiary. This is in addition to the benefits provided by the basic policy or any other rider etc. 2

3. CALCULATION OF RPR PREMIUM CALCULATION OF RPR PREMIUM The base for the calculation of RPR extra premium will be quoted as a Percentage of the Premium and not per thousand sum assured usual method. Take Basic premium under the policy. Policy fees. Policy fees. Premium for any other riders except RPR. Premium for any other riders except RPR. 3

4. ILLUSTRATION ILLUSTRATION Plan:Endowment 03 Age of the policy holder:35 Years Term of the policy:20 Years Sum assured:Rs. 200000 Premium rate:Rs. 49.20 Premium for ADB : Rs.250 Basic Premium+Policy fees: Rs.10190 Factor for considering the RPR: 100 Factor for considering the RPR: 7.14*10190 = 727.56 100 Total Yearly Premium Payable 10190+728 = Rs.10918 4

5. ADMISSIBLE AGES AND UNDER WRITING REQUIRMENTS Minimum age at entry: Minimum age at entry: 20 Years age at entry: Maximum age at entry: 60 Years Minimum term of Rider: 10 Years erm of Rider: 25 Years Maximum term of Rider: 25 Years The sum at risk for this rider for underwriting purposes will be 50% above of the basic sum assured under the policy. Other underwriting procedures will be as usual. The sum at risk for this rider for underwriting purposes will be 50% above of the basic sum assured under the policy. Other underwriting procedures will be as usual. 5

6. PLANS TO WHICH RPR CAN BE ATTACHED PLANS TO WHICH RPR CAN BE ATTACHED Refund of premium rider can be attached to the following policies. Endowment Insurance (Table 03). Endowment Insurance (Table 03). Anticipated Endowment Assurance (Table 05). Anticipated Endowment Assurance (Table 05). Child protection Policy (Table 07). Child protection Policy (Table 07). Shahabad Policy (Table 36). Shahabad Policy (Table 36). 6

7. RPR PLAN ELIGIBILITY RPR PLAN ELIGIBILITY People with standard lives can attach this rider with their Policies. Those having extra premiums like occupation extra, medical extra or policies accepted under Non-declinature scheme are not eligible for RPR supplementary contract. Moreover this rider can only be attached with Fresh/ New policies. 7

8. ILLUSTRATION Name of Plan:Endowment 03 Term:20 Years Sum assured:Rs. 500,000 Age:30 Years Risk date:30-12-2009 Maturity date:30-12-2029 Yearly Premium with ADB:Rs. 24685 RPR Premium:Rs.1,052 Total Premium payable:Rs.25,737 8

9. BENEFITS AT THE EVENT OF DEATH OF THE POLICY HOLDER T T he policy holder after paying 10 yearly Premiums @Rs. 24,650 dies in a road accident, his beneficiary will receive following benefits: Accrued Bonuses on premiums paid till the death of the policy holder:Rs. 360,000 Total premiums paid except RPR extra premiums:Rs. 246,850 Double Sum Assured due to accidental death coverage:Rs.10,00,000 Total amount payable:Rs.16,06,850 9

10. REFUND OF PREMIUM RIDER (RPR) BENEFITS This rider is a very effective tool for increasing State Life’s business. Our major block of policies consists of “savings cum protection plans. This rider has the potential for rendering the protection element virtually cost free for the policy holder. In case of death, while the rider is in force, all the premiums paid under the policy are returned to the beneficiary. This benefit is in addition to the benefits provided by the basic policy and any other riders. The premiums returned include the basic premium, policy fee and the premiums for all other riders except the premium for “Refund of premium rider”. At the maturity of rider, if the insured is still alive, no benefit will be payable under this rider.

11. PLANS TO WHICH THIS RIDER IS ATTACHABLE Refund of premium policies under Table 03/53 (Endowment Assurance), Table 05/55 (Anticipated Endowment Assurance), Table 07 (Child protection policy) and Table 36 (Shadabad plan) only provided the policy did not attract any extra premium on account of health, occupation or pass time. ADMISSIBLE AGES AND TERMS  The admissible ages under the rider range from 20 to 60. The available terms range from 10 to 25.  The age at maturity of the rider, however, may not exceed 70. ELIGIBILITY This rider is available for new policies only. It cannot be attached with existing policies. Furthermore, this rider can only be attached to policies which are accepted at standard rates.

12. PREMIUMS The premiums for this rider are quoted as a percentage of premium payable under the policy. The premium under the policy used for the calculation is the sum of basic premium, policy fee and premiums for all other riders excluding premium for this rider. UNDERWRITING REQUIREMENTS For underwriting purposes, the sum at risk for this rider will be equal to 50% of the basic sum assured under the policy to which this rider is attached.Other underwriting requirements will be as usual. SURRENDER VALUE This rider has no surrender value. Accordingly there are no non- forfeiture benefits associated with this rider. Similarly, there is no loan value of this rider.

13. REFUND OF PREMIUM RIDER (RPR) PREMIUM CALCULATION Mr. Salman Khan, a prudent businessman, is doing financial planning. As a part of his plan, he has decided to purchase an Endowment assurance (table 03) policy for a term of 20 years. He finds that a sum assured of Rs.100,000 is appropriate. His wife insists that she needs a higher level of protection. So, Mr. Salman adds a Term Insurance Rider to his policy. Mr. Salman knows that his family will also need regular monthly income after his death (God forbid). Accordingly, he adds a Family Income Benefits Rider. A Sales Agent of State Life tells him that if he is willing to increase his premium outlay be a small fraction, his family will get a refund of all the premiums paid in case he dies while the policy is in force. Mr. Salman is too happy to learn that and gets Refund of premium rider for his policy.

14. REFUND OF PREMIUM RIDER (RPR) PREMIUM CALCULATION Total premium f or his policy will be calculated as follows: Mr. Salman’s age35 Years Sum assured Rs. 100,000 Basic premium Rs. 4,920 Policy fee Rs. 100 TIR premium Rs. 730 FIR premium (income rate: 10% of sum assured Rs. 586 TOTAL PREMIUM Rs. 6,356 PRP premium (6336x7.14/100) Rs. 452 PREMIUM FOR MR. SALMAN’S LIFE Rs. 6,778

15. Developed By Moshin Abbas & Kashif Hashmi