New registration for family takaful plan in 2018 has increased to 13.1% which translates to RM4.91 billion compared to RM4.35 billion in 2017. This statistic more or less depicted the increase in awareness amongst Malaysians on the importance of having a takaful protection. However, efforts to provide awareness need to be increased because the fact is takaful penetration rate is still low compared to conventional insurance.
The main factor that needs to be emphasised in takaful awareness is holistic financial planning. When we talk about takaful, we cannot run from discussing on consumer’s pocket matters. What does it mean by consumer’s pocket matter?
In this challenging life, with the addition of COVID-19, the main worry for consumer must be their pocket money. Questions like,
“Do I need to subscribe to takaful now?”
“Can I afford to pay the monthly commitment for takaful?”
There’s a saying that goes,
“Cost is what you pay, value is what you get”
When we understand correctly on the takaful concept, we will feel the beauty of having a takaful protection and will not hesitate to subscribe to it.
Takaful is Donation
Part of the contribution that you pay in takaful will be divided into two accounts which are:
This is where the concept of donation is practiced. This fund is not collected only from you but contributed by all the participants who subscribed to takaful and put in one fund. This fund is called Tabarru’ fund. If one of the participants met with misfortune such as death or total and permanent disability, the money from this fund will be used to pay the claims for that participant.
Isn’t that a beautiful concept? You not only help yourself and your family, but you mutually agree to help others in one aqad.
Besides that, part of the contribution will be credited to Participant Account for the purpose of investment where the profits will be shared amongst the Participants and Takaful Operator based on an agreed rate.
Covered Events Under Family Takaful Plan
There are many more functions and benefits in family takaful such as legacy planning, debt settlement and asset planning in the event of participant’s death. However, the three functions mentioned above can help to solve the main risks that most people encounter.
In the financial planning context, there is no use for you to do investment without managing the risks that you may face. Improper planning can cause severe profit loss in an instant.
When you understand the benefits and its many values, you would not hesitate to subscribe to a family takaful plan. Remember, family takaful plan is your frontliner, your holistic financial protector.