Get Uninterrupted Takaful Coverage
A takaful contribution is an amount you agree to pay to your takaful operator to ensure you are fully protected by your chosen certificate and that it remains active. It is similar to premium payments in insurance.
Contributions and premiums are typically paid according to two payment frequencies – single or regular. This applies to most types of Takaful or insurance. Life, health, education, retirement and a few other insurance policies or Takaful certificates require regular contributions or premium payments. Most customers choose to pay these monthly, although quarterly or bi-annual payments may also be arranged. Short term coverage or policies, like travel insurance or insurance added on to a specific purchase such as a laptop, mobile phone and so on, normally incur a one-off payment. Personal automobile insurance or Takaful is also typically paid once a year.
The contribution or premium amount you will be required to pay generally depends on the type of policy or certificate you have chosen, alongside other factors. This includes the benefits it pays out, your age, location, and whether you are an at-risk customer. The higher the benefits, and the older and the more at-risk you are, the higher your contribution or premium will be. Different types of Takaful certificates or insurance policies will, of course, have different criteria for evaluating this figure and it is also possible for this figure to be revaluated and changed accordingly.
The importance of paying your contributions timely
Once you have accepted your Takaful certificate proposal, your coverage only kicks in when you have made the very first contribution. It is crucial to make that first contribution immediately to ensure you are protected. The Takaful operator is under no obligation to cover your claims or benefits otherwise.
Non-payment of contributions can cause your certificate to lapse, and once your certificate has lapsed, you will not be entitled to any coverage or benefits whatsoever. If a non-payment occurs, your operator may provide you with a grace period of 30 days for you to make payment, during which your certificate will continue to remain active. Failure to make payment within the grace period will result in one of these two things:
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If you have available funds in your certificate account, your Takaful operator will use those funds to keep your certificate active for as long as possible until your funds run out.
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If you have insufficient funds in your certificate account or when your funds run out, your certificate will lapse and you will no longer be protected.
It is, therefore, crucial for you to make your contributions on time. And the best way to ensure your Takaful coverage is continuously active is by enrolling for automatic payments. With options to make payment via direct debit from your savings or current accounts of your preferred bank, or using a preferred debit or credit card, PruBSN Touch ensures your payments are paid regularly and on time. This significantly reduces the risk of incurring a lapse to your Takaful certificate.
Contact our Takaful Agents today or read here for more information about automatic payment.