Family Takaful is a long-term savings and investment programme providing mutual financial assistance among its participants.
Family Takaful is a long-term savings and investment programme with a fixed maturity period.
Apart from enjoying investment profit, the plan provides mutual financial assistance among its participants.
Thus Family Takaful is a financial programme that pools efforts to help the needy in times of need due to untimely death and other mishaps resulting in personal injury or disablement.
The different plans designed would enable its members to participate in a Takaful scheme with the following aims:
- To save regularly
- To invest with a view of earning profits which are Sharia-compliant, and
- To avail of cover in the form of payment of Takaful benefits to heir(s) should a participant die before the maturity date of their Takaful plan.
The operations of Family Takaful
A person who participates in any Family Takaful plan is called a participant. A participant may choose any one of the plans offered by the company. The different plans have defined periods of participation.
The Takaful company and the participant will enter into a long-term Takaful contract, which is based on the principle of Al-mudharabah (profit-sharing).
Family Takaful benefits
1. In the event that a participant should die before the maturity date of his chosen plan, the following benefits would be paid to him:
- i) The total amount of the contributions paid by the participant from the date of inception of his chosen Takaful plan to the due date of the installment payment prior to his death and his share of profits from the investment of the installments which have been credited into his participation account;
- ii) The outstanding contributions which would have been paid by the deceased participant should he survive. This outstanding amount is calculated from the date of his death to the date of maturity of his takafol plan which shall be paid from the participant’s special account as agreed upon by all the participants in accordance with the takafol contract.
2. In the event that a participant survives until the date of maturity of his chosen plan, the following benefits shall be paid to him:
- i) The total amount of contributions paid by the participant during the period of his participation plus his share of profits from the investment of the Takaful installments credited into his participation account.
- ii) The net surplus allocated to his participant’s special account as shown in the last valuation of the participant’s special accounts.
3. In the event that a participant is compelled to surrender or withdraw from the Takaful plan before the maturity date of his chosen plan, he shall be entitled to the surrender benefits. The participant is entitled to receive the proportion of the contributions that have been credited into the participation account including his share of investment profits. However, the amount that has been relinquished as tabarru’ will not be refunded to him.
The various types of Family Takaful plans available in the market are:
- Takaful plan for education
- Takaful mortgage plan
- Group Family Takaful plan
- Group hospitalization and medical benefit
*Coming soon – Please note that Takaful Africa do not offer any Family Takaful products at present