Family Takaful Plans PDF

FAMILY TAKAFUL PLANS 8.0  INTRODUCTION Family Takaful Scheme provides the participant with protection + long-term savings From the contribution, a portion will go to PSA that will be used to fulfill the obligation of mutual help...

FAMILY TAKAFUL PLANS 8.0  INTRODUCTION Family Takaful Scheme provides the participant with protection + long-term savings From the contribution, a portion will go to PSA that will be used to fulfill the obligation of mutual help Participant Account Takaful Family Takaful Participant Contribution Fund Participant Special Account BASIC PRINCIPLES OF CONTRACT Permissible Interest Utmost Good Faith Indemnity Subrogation Contribution Proximate Cause APPELLATION OF CONTRACT Termination of contract being effective once the participant received the settlement of claim Early treatment will involve the surrender value if any Upon death of payor - waiver of contribution paid Unilateral Contracts - both participant and Takaful Operator have certain rights and obligations  TYPE OF COVER INDIVIDUAL FAMILY TAKAFUL GROUP FAMILY TAKAFUL Education Employers Investment - Linked Clubs Mortgage Associations Rider Societies INDIVIDUAL PROTECTION PLAN Individual Protetion Saving Child Mortgage Rider Takaful Plan Education Reducing Takaful Plan Term Takaful SAVING TAKAFUL PLAN Comprises the elements of savings & returns on investment with individual protection Optimize the returns on investment on the participants 2 key elements Level term cover Investment account BENEFITS TOP-UP OPTION Financial compensation in the event of death or total Allowed from commencement of the certificate permanent disablement (TPD) to participant before Solely allocated for PA which will earn profit certificate (takaful plan) matures If certificate matures, participant will receive RIDER ATTACHMENT OPTION accumulated amount in participant accoun (PA) , also the net surplus from participant special account Can opt for any rider plan. i.e medical & health (PSA) takaful plan CONTRIBUTION AMOUNT BETTER INVESTMENT RETURN Based on age & term of the certificate Allows Takaful Operator to optimize investment returns participants PARTIAL WITHDRAWAL EXCLUSION Allowed after certain minimum of forced period Exclude pre-existing conditions i.e 3 years CHILD EDUCATION TAKAFUL PLAN (CEPT) - Provides protection & long-term savings to finance a child's higher education expenses CEPT Investment - Linked Ordinary Child Child Education Family Takaful Educational Takaful Takaful RIder CEPT Ordinary Child Educational Takaful Financial benefits arising from death or permanent disability, long-term savings (education fund) & investment profits Investment - Linked Child Educational Takaful A portion of the contribution is used to buy investment units. i.e fixed income securities Financial benefits arising from death or permanent disability Investment unit sold upon claim, maturity or early surrender Family Takaful As a rider or an extension of basic coverage for both the participant & his child Provides coverage against personal accident and disability, hospitalization benefits, funeral expenses & critical illnesses Benefits 1- Upon maturity & child survives 2- Payor dies before CETP matures 3- If the child dies Contribution Amount Depend on age & term of certificate. Waiver of condition based on 1- payor’s death or Total Permanent Disablement. All the contribution will be paid through the fund until the certificate matures. Partial Withdrawal Allowed during the lifetime of certificate subject to TO terms & conditions. Satisfy a minimum number of year; i.e 3 years. Top-up Option Allowed from the commencement of the certificate & solely allocated to PA which will earn profit. Better Attachment Option Family Takaful rider coverage for participant & child : - 1- personal accident & disability; 2- hospitalization benefits; 3- funeral expenses; 4- critical illness. Better Investment Return Optimize investment return to the participants Exclusions 1- suicide; 2- death/injury due to breaching the law; 3- provoked assault; 4- under influenced of drugs/alcohol; 5- AIDS/HIV; 6- other causes prohibited by Shariah. MORTGAGE REDUCING TERM TAKAFUL (MRTT) What would happened if the owner of the house die or faced with permanent disablement while still serving his/her housing loan? MRTT plan - the financial burden arising from death or total permanent disablement is covered on a long- term basis Type of cover ⚬ Guaranteed benefit to settle the mortgage balance based on reducing sum covered + consolation benefit payable upon death or permanent disablement Benefits Death Total Permanent Disablement (TPD) Contribution Amount The contribution amount correlates with the balance loan Guaranteed Benefit to MRTT ensures that the mortgage will be settled thus securing the payment of the debt Settle the Mortgage in a housing facility (housing loan) Balance Better Attachment Personal accidents plan Option Termination Early termination – high costs and surrender value maybe less than the contribution value paid. This will only allow when the said property is fully paid. If death or TPD arising :- Exclusions Suicide or attempted suiciding Other caused prohibited by civil and criminal laws and Shari’ah RIDER Rider added to the basic certificate to confer additional benefits Lead to additional contribution paid to the family takaful plan The payout is either in the form of annuity or a lump sum payment The other certificate benefits will remain Example of rider ⚬ Medical and health takaful plan ⚬ Hospitalization benefit ⚬ Personal accident