Tuesday, October 2, 2007

Takaful Concept in Family Takaful


Family takaful works on the basis of mutual help, where all the participants fulfil their obligation in the form of participative contribution (tabarru’). Simply put, part of your contributions in family takaful are used to help other participants who suffer a misfortune, such as death or permanent disability. This fund is known as the Participant’s Special Account (or PSA), which is used to mutually help participants in their hour of need.

But there is more to family takaful. The other part of your contribution is placed in another fund for savings and investment. This is the Participant’s Account (or PA). The savings and investment contributions here will be invested by the takaful operator and the profit will be shared between you and the takaful operator according to a pre-agreed ratio.

At the date of maturity for your plan, you are entitled to share in the net surplus from the fund. The calculation below shows you briefly how the takaful concept can work for you.

Example: A takaful operator has a total surplus (S) of RM4 million and total general contribution (GC) of RM10 million. Your contribution (C) for the year is RM500 and the surplus will be shared between you and the takaful operator at a pre-agreed sharing ratio (PSR) of 50:50.

Family takaful provides you with both a protection policy and long-term savings for your peace of mind. You or your beneficiary will be provided with financial benefits if you suffer a tragedy. At the same time, you will enjoy an investment return because part of your contribution will be deposited in an account for the purpose of savings. You have a choice of maturity periods and there is no forfeiture in the event of cancellation. You are also entitled to personal tax relief when you participate in family takaful

* Info from : takafulnasional website

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