Family Takaful Plans and Principles
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Questions and Answers

What benefit does the MRTT plan provide in the event of the owner's death or total permanent disablement?

  • It provides a lump sum payment for living expenses
  • It settles the mortgage balance (correct)
  • It covers all funeral expenses
  • It pays a monthly annuity to the family

    • Which of the following is NOT an exclusion under the Family Takaful rider coverage?

  • AIDS/HIV
  • Suicide
  • Death from provoked assault
  • Death due to accidental injuries (correct)

    • What additional benefit does a rider confer to the Family Takaful plan?

  • It does not lead to additional contributions
  • It offers enhanced benefits like medical coverage (correct)
  • It provides only funeral expense coverage
  • It alters the basic certificate benefits

    • How does the contribution amount in the MRTT relate to the housing loan?

    <p>It correlates with the balance loan (C)</p> Signup and view all the answers

    What happens in the event of early termination of a plan under MRTT?

    <p>High costs are incurred and the surrender value may be less than contributions paid (A)</p> Signup and view all the answers

    Which of the following statements about riders is true?

    <p>Riders add extra benefits to the family takaful plan (A)</p> Signup and view all the answers

    What type of coverage is NOT explicitly mentioned as part of the Family Takaful rider?

    <p>Long-term care (C)</p> Signup and view all the answers

    Which type of benefit can a rider in the family takaful plan provide?

    <p>Lump sum payment or annuity (B)</p> Signup and view all the answers

    What is one of the primary functions of the Family Takaful Scheme?

    <p>To offer protection and long-term savings (C)</p> Signup and view all the answers

    Which principle of contract emphasizes honesty and transparency between parties?

    <p>Utmost Good Faith (A)</p> Signup and view all the answers

    In the event of an early treatment, what would likely be involved?

    <p>Surrender value if applicable (C)</p> Signup and view all the answers

    Which of the following is NOT a type of Family Takaful Cover?

    <p>Automobile Takaful (A)</p> Signup and view all the answers

    What is the purpose of the Top-Up Option in the Saving Takaful Plan?

    <p>To earn profit on the participant's account (A)</p> Signup and view all the answers

    What happens upon the death of a payor in a Family Takaful contract?

    <p>There is a waiver of contributions paid (C)</p> Signup and view all the answers

    What benefit does a participant receive if their Takaful certificate matures?

    <p>Accumulated amount in the participant's account and net surplus (D)</p> Signup and view all the answers

    What is a rider attachment option in the context of Family Takaful?

    <p>It allows participants to opt for additional riders for coverage (D)</p> Signup and view all the answers

    What is a key feature of a Child Education Takaful Plan (CEPT)?

    <p>It offers protection and long-term savings for education expenses. (D)</p> Signup and view all the answers

    What does the Partial Withdrawal option in a Takaful plan entail?

    <p>Withdrawals can be made only after a minimum period. (A)</p> Signup and view all the answers

    How is the Contribution Amount determined for Takaful plans?

    <p>It depends on the participant's age and the term of the certificate. (A)</p> Signup and view all the answers

    Which of the following is excluded in Takaful plans?

    <p>Pre-existing medical conditions (C)</p> Signup and view all the answers

    What type of financial benefits does the Investment-Linked Child Educational Takaful offer?

    <p>Death benefits and investment profits. (A)</p> Signup and view all the answers

    What does the waiver of condition based on payor’s death imply in a Takaful plan?

    <p>No contributions are required until the plan matures. (A)</p> Signup and view all the answers

    What is a top-up option in Takaful plans?

    <p>An option to add funds that earn a separate profit. (B)</p> Signup and view all the answers

    Which benefit is provided if the payor dies before the Child Educational Takaful Plan matures?

    <p>All contributions continue to be paid until maturity. (C)</p> Signup and view all the answers

    Study Notes

    Family Takaful Plans

    • Family Takaful Scheme combines protection and long-term savings.
    • A portion of contributions goes to a Protection and Savings Account (PSA) for mutual assistance.
    • Participants have a designated account and a special account.

    Basic Principles of Contract

    • Permissible Interest
    • Utmost Good Faith
    • Indemnity
    • Subrogation
    • Contribution
    • Proximate Cause

    Termination of Contract

    • Ends when the participant receives a claim settlement.
    • Early treatment may involve a surrender value.
    • Death of the payor waives outstanding contributions.
    • Both participants and Takaful operators have rights and obligations.

    Types of Cover

    • Individual Family Takaful: Education, Investment-Linked, Mortgage, Rider
    • Group Family Takaful: Employers, Clubs, Associations, Societies

    Individual Protection Plan

    • Individual Protection
    • Saving Takaful Plan
    • Child Education Takaful Plan
    • Mortgage Reducing Term Takaful
    • Rider

    Saving Takaful Plan

    • Combines savings, investment returns, and individual protection.
    • Optimizes investment returns for participants.
    • Key elements: Level term cover, investment account.

    Benefits

    • Financial compensation for death or total permanent disability (before certificate maturity).
    • Participants receive accumulated amounts upon certificate maturity, plus surplus from PSA.
    • Contribution amount depends on age and certificate term.
    • Partial withdrawal is allowed after a specific waiting period (e.g., 3 years).
    • Top-up options are available from the commencement of the certificate for the PSA.

    Child Education Takaful Plan (CEPT)

    • Offers protection and long-term savings for children's education expenses.
    • Investment-Linked Child Educational Takaful is a component.
    • A portion of contributions funds investment units (e.g., fixed income securities).

    Mortgage Reducing Term Takaful (MRTT)

    • Addresses financial burdens from death or disability during a mortgage period.
    • Covers mortgage balances on a long-term basis.
    • Guaranteed benefits settle the mortgage balance based on reducing premiums.
    • Includes consolation benefits on death or total permanent disablement (TPD).

    Rider

    • Added benefits to the basic certificate.
    • Increases contributions to the family Takaful plan.
    • Payouts are either annuities or lump sum payments.
    • Examples: medical and health plans, hospitalization, personal accident, etc.

    Exclusions and Caveats (General)

    • Pre-existing conditions excluded.
    • Certain actions (e.g., suicide, prohibited activities under Sharia) may void coverage.
    • Early termination may have reduced payout values.

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    Related Documents

    Family Takaful Plans PDF

    Description

    Explore the intricacies of Family Takaful plans, which combine protection with long-term savings, and understand the basic principles guiding contracts within this framework. This quiz delves into terminologies, types of coverage, and the rights of participants. Test your knowledge on key concepts like permissible interest, utmost good faith, and indemnity.

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