Takaful part C- Family Takaful

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Takaful part C- Family Takaful
2013-06-02 10:17:36

Public Bank
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  1. Family Takaful
    Provides participants with both protection and long-term savings.

    -contribute a certain amount of money to takaful fund ie: Participant's Special Account(PSA)-tabarru and participant's account(PA)- investment.

    PSA will be used to fulfill the obligation of mutual help.

    profit from PA will be shared between the participant and the takaful operator at a pre-agreed ratio.
  2. Basic characteristics of Family Takaful plan
    • 1. Long-term contracts with Usually Level Contribution
    • 2. Observation of The principle of Utmost Good Faith by both parties
    • 3. Aleatory Contracts
    • 4. Insurable Interest
    • 5. Termination of Contract with Payment of A Claim
    • 6. Unilaterral contacts
    • 7. Risk to be convered Increases with time
    • 8. Contract of Adhesion

    • Unilateral contract is a on-sided contract in the sense that only one party makes the offer, which the other party is not obligated to fulfill
    • Aleatory Contracts is an insured pays a premium in exchange for an insurance company's promise to pay damages up to the face amount of the policy
    • Adhesion contract "take it or leave it"
  3. Types of cover - individual family takaful
    • 1 individual family takaful (individuals)
    • participants will receive financial benefits arising from death or permanent disability, as well as distributed upon claim, maturity or early surrender.
  4. Type of cover - Group family takaful(empoyer, clubs, associations and societies)

    include group education, group medical, and retirement. a minimum number of participants are required to qualify as a 'group' under these plans. Participants will receive protection in the from of financial benefits arising from death or permanent disability. Examples of products falling into this category are as follows:

    • a. Mortgage Reducing Term Takaful
    • b. Group Credit Takaful
    • c. Employee Benefit Takaful
    •  i)  Group term takaful
    •  ii) Group immediate Death Takaful
    •  iii. group hospitalization & surgical takaful
    •  iv. Non-Employee Benefit Takaful
    •   v. Comprehensive Group Takaful Scheme
  5. Types of Cover - A Family Takaful Rider
    an extention of the basic family Takaful. The rider provides coverage against personal accident and disability, medical and health.

    The various riders available are given below:

    • a) critical illness Takaful rider
    • b. accidental death and disability takaful
    • c. waiver of contribution takaful rider
    • d. payor savings takaful rider
    • e. term takaful rider
    • f. hospital and benefit takaful rider
    • g. family income takaful rider
  6. Individual protection plan-saving takaful plan
    saving takaful is a plan with compromise the element of savings and returns on investment with individual protection. designed to optimize the return on investment on the participant
  7. Individual Protection Plan- Saving takaful Cover
    • This plan utilizes two key elements that will together meet or satisfy the obligation under the saving takaful:
    • 1. Level Term Cover
    • 2. Investment Account
  8. Child education takaful Plan (CETP)
    • - Protection and long term savings to finance a child's higher education expenses.
    • - Financial benefits in the event the payor suffer a setback
    • - eligible for personal tax relief up to RM3,000 per year
    • -CETP can be grouped as follows:
    •  1. Ordinary Child Education Takaful
    •  2. Investment-linked Child Education Takaful
    •  3. A family Takaful ridr or an extention of basic coverage for both the participant and his child is also available. The rider provides coverage against personal accident and disability, hospitalisation benefits, funeral expenses and critical illnesses.