Mutual cooperation and assistance
Participants work together by contributing to a shared fund to support those who experience a covered loss.
What is Takaful?
The term takaful is derived from an Arabic root word “kafala” which means responsibility, joint guarantee or guaranteeing each other.
Islamic Financial Services Act (IFSA) 2013 has defined takaful as an arrangement based on mutual assistance under which takaful participants agree to contribute to a common fund providing for mutual financial benefits payable to the takaful participants or their beneficiaries on the occurrence of pre-agreed events.
How mutual assistance applies in takaful?
Mutual assistance in takaful refers to a contractual relationship among the participants contributing into the Tabarru` Fund. It applies when a participant of takaful agrees to participate in a takaful plan together with all the other participants with the intention is to help one another in case of need.
The Tabarru`at (charitable) contribution that the participant make will be pooled into the Tabarru` Fund together with the contribution of other participants to provide for mutual financial benefits payable to all the eligible takaful participants or their beneficiaries on the occurrence of pre-agreed events based on the agreed takaful benefit under the plan.
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Mutual responsibility
Each participant takes collective responsibility for the welfare of the group through their contribution to the Tabarru' Fund.
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Mutual protection against losses
The pooled contributions are used to provide financial support to participants affected by specific risks, based on the agreed terms of the Takaful plan.
How does mutual assistance work in Takaful?
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Step 1: Join a Takaful plan
You become a participant and agree to support fellow members.
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Step 2: Contribute to the Tabarru' Fund
Your contribution, along with others', goes into a pooled charitable fund.
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Step 3: Support each other in times of need
When a pre-agreed event occurs, the fund provides financial support to participants or their beneficiaries.
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Step 4: Share the spirit of mutual assistance
This system reflects cooperation and shared responsibility, ensuring everyone is protected collectively.
How much coverage do you need?
It depends on your financial situation and what you can comfortably afford. The goal is to help reduce your family's and your own financial burden if something unexpected happens. Take some time to review your needs so you can choose the coverage that works best for you.
Importance considerations for a family Takaful plan
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Your needs
Assess your personal needs by reviewing assets, liabilities and future goals to determine the coverage amount that fits your situation.
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Your risks or obligations
Consider what risks you want covered, such as critical illness or accidental death and align the plan term with your financial obligations.
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Your dependents and commitments
Factor in dependents' financial independence and key life events like weddings or career milestones when deciding the coverage duration.
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Your financial goals
Set clear goals like legacy planning, mortgage repayment, or education funds, ensuring your plan supports these within specific time frames.
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Your desired protection level
Consider dependents, long-term obligations, lifestyle, savings and projected future expenses to determine the appropriate protection level.
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Your budget or affordability
Set your budget for family Takaful. Lindungi Plan offers affordale term coverage - protect loved ones without straining your finances.
What to be aware of when signing up
- Understand the product
Read all product documents carefully to fully understand coverage, terms and benefits before committing to a plan.
- Disclose required information
Provide accurate personal, medical and lifestyle details so the Takaful operator can assess your risk correctly.
In 2021, your contributions towards the Tabarru' fund has assisted:
Note: This is based on total registered claims amount. The paid claims amount in 2021 is RM535.3 million for 52,049 participants.
