The State Life Shad Abad Endowment Plan is one of Pakistan’s longest-running life insurance products — a savings-plus-protection contract with a government guarantee. In this review we cover eligibility, premium ranges, bonus history, illustrated maturity values, tax benefits, and how it stacks up against Jubilee and EFU alternatives.
What is the Shad Abad Endowment Plan?
Shad Abad is a with-profits endowment: you pay a level annual premium for the term you choose (10–40 years). If you die during the term, your nominees receive the sum assured plus vested bonuses. If you survive, you receive the same benefit as maturity value.
Eligibility & entry criteria
- Entry age: 18 to 65 years
- Policy term: 10 to 40 years
- Minimum annual premium: Rs 15,000
- Minimum sum assured: Rs 100,000 (no upper limit, subject to underwriting)
- Medical: standard health declaration; larger sums require a medical exam
Illustrated returns (20-year term, Rs 1,000,000 sum assured)
| Year | Total Premiums Paid | Illustrated Cash Value |
|---|---|---|
| 5 | Rs 210,000 | Rs 220,000 |
| 10 | Rs 420,000 | Rs 620,000 |
| 15 | Rs 630,000 | Rs 1,240,000 |
| 20 (maturity) | Rs 840,000 | Rs 2,150,000 |
Figures are illustrative based on historical bonus rates. Actual bonuses are declared annually by State Life’s actuary.
Why choose Shad Abad over other endowments?
- Government of Pakistan guarantee — the sum assured and vested bonuses are legally guaranteed. No private endowment offers this.
- 60+ year bonus track record — consistent annual bonuses since the 1970s.
- Loan facility — after 3 years, you can borrow up to 90% of the surrender value.
- Optional riders — accidental death, permanent disability, family income benefit.
- Tax deduction — premium qualifies under Section 62 of the Income Tax Ordinance.
Available riders
- Accidental Death Benefit (ADB) — doubles the sum assured on accidental death.
- Permanent & Total Disability (PTD) — waives future premiums on disability.
- Family Income Benefit (FIB) — pays a monthly income to the family until maturity.
Shad Abad Endowment vs. private alternatives
| Feature | State Life Shad Abad | Jubilee Life Endowment | EFU Life Endowment |
|---|---|---|---|
| Government guarantee | ✅ | ❌ | ❌ |
| 20-year multiplier (illustrated) | 2.15× | 1.85× | 1.90× |
| Minimum premium | Rs 15,000 | Rs 24,000 | Rs 24,000 |
| Loan facility | After 3 yrs | After 3 yrs | After 3 yrs |
Who should buy Shad Abad?
The Shad Abad plan is ideal for salaried professionals aged 25–45 who want a guaranteed, tax-efficient savings vehicle with life cover attached — without exposure to stock-market fluctuations.
Frequently asked questions
Is Shad Abad 100% safe?
Yes — the sum assured plus vested bonuses are guaranteed by the Government of Pakistan.
Can I surrender the policy early?
Yes, after 2 full annual premiums have been paid. Surrender value is lower than maturity value, so surrender is discouraged.
How is the maturity amount paid out?
As a tax-free lump sum, usually within 15–21 working days of maturity claim.
Get a personalized Shad Abad illustration for your age and sum assured — use our calculator or book a free consultation.