Definition Of Takaful

Takaful is derived from the Arabic word "Takafala"; which means joint guarantee. It basically refers to a concept whereby a group of participants agree to jointly guarantee among themselves against a defined loss. According to Islamic Financial Services Act 2013 (IFSA), "Takaful" means 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 occurence of pre-agreed events.

BENEFIT OF TAKAFUL PRODUCT

Protection/Coverage; the Tabarru which is credited from the Participant Investment Fund (PIF) to the Participant Risk Fund (PRF) will be used to help participants in the event of any misfortune.

Investment Profit

Payment of the contribution shall be allocated to the PIF after deducting the Wakalah fee. The Operator will manage and invest the allocated contribution in Shariah-approved securities. The profits from the investment performance will be retained in the PIF for the benefit of the participants.

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Surplus

If at the end of the financial year there is net surplus in the PRF, it shall be distributed between the Participants and the Operator in the agreed ratio based on the type of Takaful plan, provided that the Participant has not incurred any claim and/or the Certificate Holder has not received any benefits payable under each type of cover under this certificate whilst it is in force.

Ammetlife Takaful

AmMetLife Takaful is a strategic partnership between AMMB Holdings Berhad (AmBank Group) and MetLife International Holdings LLC (MetLife).

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AmMetLife Takaful offers a comprehensive range of takaful products distributed through a combination of over 170 AmBank and AmMetLife branded branch offices, in addition to the strength of its authorised takaful agents nationwide.

The strategic partnership combines the international expertise and financial strength of MetLife with the local strength and reach of AmBank Group to create a customer-centric and modern takaful solutions provider in Malaysia.

Together with a deep and respectful knowledge of Shariah principles and values, they are focused on meeting their customers diverse needs with innovative solutions at different stages of their lives, making it easier and simpler for families and individuals to achieve financial security and pursue more from life.

AmMetLife Takaful are offer a range of takaful products such as protection, savings, health, education, reducing term takaful, group products as well as well as funds options.

Am Met Life takaful are provided:

Protect-i Budi (A Spiritual Investment for This Life and Hereafter)

Am Met Life takaful want to ensure that they are not only fulfil religious obligations by performing hajj or umrah, but also being able to give back to society. All the while ensuring the loved ones are protected as well. Through good planning and giving, everone will lead a meaningful and peaceful life in this world and receive eternal rewards in the afterlife. Be spiritually and financially ready to invest in this life and beyond.

Protect-i Budi is a Shariah compliant regular contribution family takaful plan which provides protection against death or Total and Permanent Disability (TPD) in the form of sum covered in which an additional 100% sum covered will be payable if these unfortunate events occur during Hajj or Umrah. Apart from protection, it also grows their customer's savings and creating additional funds to fulfil their religious obligations. Best of all, their customer can add in Waqaf Rider to enjoy eternal rewards in the afterlife. For a more comprehensive coverage, their customer can also include Contributor Rider that ensures they are continuously covered even if any misfortunes happen to the payor. Minimum entry age is 30 days old and maximum age is 60 years old for participant.

ProtectSecure-i Murni (Companion in Your Spiritual Journey)

It is the aspiration of every Muslim to perform Hajj or Umrah at least once in their lifetime. As a preparation for this spiritual obligation, it is not only important to invest for the holy pilgrimage but also to ensure that their customer and family are protected from the unfortunate event.

ProtectSecure-i Murni is a Shariah compliant regular contribution family takaful plan which provides protection against death or Total and Permanent Disability (TPD) in the form of sum covered in which an additional 100% sum covered will be payable if these unfortunate events occur during Hajj or Umrah. Other than that, ProtectSecure-i Murni also provided waqaf benefit payable to waqaf organization approved by their shariah committee. Besides, funeral benefit upon death, special allowance at the end of 3rd certificate year for their customer Hajj or Umrah aspiration and flexibility to perform partial withdrawal after 5 years. Minimum entry age is 30 days old and maximum age is 60 years old for participant.

i-Am Shield (Weathering uncertainties)

i-Am Shield, a Shariah-compliant family takaful plan, takaful protection that safeguard their customer and family financial in the event that they are diagnosed with one of 36 critical illnesses. i-Am Shield comes with the following features such as pure protection against critical illness and simplified underwriting and no medical underwriting. Minimum entry age is 18 years old and maximum age is 50 years old for participant to the next birthday.

i-Am Care

i-Am Care, a Shariah-compliant family takaful plan, ensures that their customer medical bills are well taken care of in the event that they are hospitalized or required surgical. i-Am Care comes with the following features such as simplified underwriting and no medical underwriting, no lifetime limit and no co-payment if room and board does not exceed the plan. Minimum entry age is 18 years old and maximum age is 50 years old for participant to the next birthday.

i-Am Protect (Protection made affordable)

Having a financial protection plan is no longer a demand, but it is an important need if misfortune affects. Time constraints and commitments also limited to find adequate protection plans to ensure their loved ones can live in calm and comfortable life. Apart from that, AmMetLife Takaful are passionate in providing the best solution in their customer time of need.

i-Am Protect, a Shariah-compliant family takaful plan, takaful protection is now made affordable for their customer, so that in the event of their encounter misfortune, their loved ones will be financially protected. Minimum entry age is 18 days to 55 years old for participant.

Wealth Care-i Style,

This plan gives two benefits of protection and potential investment-linked income, including the flexibility to achieve the perfect balance throughout the different stages of their life such as death, total permanent disability and critical illness coverage, flexibility to top-up or switch your investment funds, cash accessibility through partial withdrawals from the participant investment fund and choice of riders to enhance protection. Minimum entry age is 30 days old for participant and 18 years old for certificate holder. Maximum age is 60 years old for participant and certificate holder.

EduCare-i PendidikanWith EduCare-i Pendidikan, parents will be able to give their child a 2-in-1 protection, while also providing the possibility of the brightest future such as death, total permanent disability and critical illness covers for their child, supplementary death and total permanent disability covers for them, coverage for future contributions in their absence and flexible investment duration and contribution frequency. Minimum entry age is 30 days old to 16 years old for participant while for certificate holder is 18 years to 60 years.

GoldenCare-i Style (Maximise Your Investment Potentials)

Golden Care-iStyle plan takaful is helping their customer to achieve their future needs. It not only providing protection cover but also investment funds of their customer choice such as death, total permanent disability and critical illness covers. Besides, can flexibility to top-up and switch funds and enjoy partial withdrawals from the participant investment fund. Minimum entry age is 30 days old to 80 years old for participant while for certificate holder is 18 years to 60 years.

GoldenSecure-i Style

Let us inspire you to build a financially secured life for your loved ones. Leave your worry to us while we protect you financially in the event of death, total and permanent disability and critical illness.

  • Death, Total Permanent Disability and Critical Illness covers
  • Flexibility to top-up, switch funds, make partial withdrawal and even surrender
  • Selection of Investment-linked funds to match your needs
  • Enjoy partial withdrawals from the Participant Investment Fund
  • Minimum entry age is 30 days old to 60 years old for participant while for certificate holder is 18 years to 60 years.

It not only providing protection cover but also investment funds of their customer choice such as death, total permanent disability and critical illness covers. Besides, can flexibility to top-up and switch funds and enjoy partial withdrawals from the participant investment fund. Minimum entry age is 30 days old to 80 years old for participant while for certificate holder is 18 years to 60 years.

AutoSecure-i

Never think twice about taking coverage to protect your hire purchase financing. Let us cover you on inability to make financing repayments in event of an unfortunate event. We care for your loved one's happiness and your peace of mind.

  • Keeps your family out of lawsuit
  • Settles the outstanding hire purchase financing
  • Relief of financial burden for your family when they need it most
  • One-off payment that ensures your long-term protection

Eligibility

Minimum entry age is 18 years old to 50 years old for participant. This will expiry when 65 years old.HomeSecure-i

Anything can happen anytime, one needs to be prepared to cover an outstanding mortgage, while maintaining one's family lifestyle should the unexpected happen. Our mortgage reducing term takaful plan does exactly that while offering you peace of mind knowing your mortgage is covered.

  • Death, Total Permanent Disability covers
  • Protects your family against a lawsuit
  • Safeguards your home for you and your family
  • Relief financial burden for your family in your absence
  • One-off payment that ensures your long-term protection
  • Minimum entry age is 18 years old to 60 years old for participant. This will expiry when 70 years old.

FinanceSecure-i

It has become a norm to get protection for home or vehicle loan, but what about covering your financial commitments? Guard your finances and your loved ones against the unforeseen events with FinanceSecure-i.

  • Ensures your family is not troubled with your liability
  • Covers your repayments means
  • Leaves your loved one's debt-free

Minimum entry age is 18 years old to 60 years old for participant. This will expiry when 70 years old.

Group Secure-i

Employees are every organisation's greatest assets. Attract and retain the best talents for your organisation by proving your employees with attractive benefit packages through Group Secure-i. A group takaful plan for employees against unfortunate events. It is 24/7 protection coverage. With this plan, the company can increases their productivity with best package.

Show them you care

Another add on for for rider include of Personal Accident Rider

This rider assists to compensate Participant in the event of injuries, disability or death due to accidents within 90 days from the accident date. It also provides weekly, double indemnity as well as repatriation benefits. This only valid for 18 years old to 60 years old.Hospital Benefit Rider.

This rider provides a fixed cash payment in case Participant is hospitalised within the coverage term or prior to 70 years old. This is for 30 days to 60 years old

Medical Cover Rider

This rider provides the Participant a comprehensive medical coverage to compensate medical expenses such as in-patient and out-patient treatments as specified in the Schedule of Benefits.

Participant : 30 days to 60 years old

Contribution Waiver Rider

This rider will waive all future contributions in the event the Participant diagnosed with one of the thirty-six (36) critical illnesses until the Participant reach the age of 65.

Participant : 18 years to 60 years old

Payor Waiver Ride

This rider will waive all future contributions in the event the Certificate Holder (herein "Payor") diagnosed with Critical Illness, Death, or Total Permanent Disability.

Participant : 18 years to 60 years old

Financial Planning

Having a successful life truly depends on how well you plan your finances to meet your current needs and cater for your future plans. At AmMetLife, we aspire to help you to protect everything that matters most to you as you progress towards achieving your dreams. With our extensive knowledge and experience, we are able to create customised solutions according to your needs and preferences that are just right for you.

It pays to know how you can lead a great life and our servicing agents will be happy to take you through a financial needs analysis and offer recommendations that would certainly address the following needs:

Income Protection

Whether you are employed or running your own business, protecting your family as the bread winner is a huge responsibility. Your loved ones are looking up to you with so much hope and desire to have a comfortable life. But are you ready to continue fulfilling your family's need when you are incapacitated and unable to work due to illness or an accident? Life is always infused with unexpected tragedies and you need to have total control of your family.

Education

You always aim to provide the best education for your children and in pursuing this desire you often exhaust your own savings including your retirement funds. The fact is, you can grab a hold of your child's future if you plan early to take advantage of the precious time when your children are still in school.

So, do you have a plan that protects your child and build his college funds, simultaneously? Does your current education plan offer value for your commitment?

Retirement

Everyone envisions a retirement life that is both fulfilling and purposeful. However, the possibility to outlive sufficient financial resources during retirement has always been a daunting concern for all of us. Therefore, it is never too early to start planning for your retirement because the real payoffs come when you allow your savings to grow with time. With escalating costs of health care and wellness, have you planned for a steady stream of income to support your needs during retirement years?

Savings

Small savings go a long way to protect your business income and accumulate additional funds to supplement your retirement needs. It may seem impossible to save regularly but once you realise the value of time, it is possible to cultivate the discipline and start saving for a better tomorrow.

However, you need to know:

  • What is the purpose of your savings and what is the amount that you are expecting to have at the end of your savings period?
  • What kind of protection do you need while you are saving towards a specific goal?

It all begins with the first step to understand how you can stretch your options to have a successful life that reflects your personality. Call us now and our servicing agents will assist you to answer all your questions and show how you can experience your ideal life starting today.

AmMetLife Takaful applies the following Shariah concepts/principles:

Tabarru (Donation)

In Takaful business, Tabarru is a donation for the purpose of mutual protection among the participants. Tabarru is credited from the Participant Investment Fund (PIF) to the Participant Risk Fund (PRF) which will be used to help other participants in the event of any misfortune.

WakalahWakalah (agency) contract in Takaful business refers to a contract established between the Certificate Holder and the Operator (AmMetLife Takaful) where the Certificate Holder appoints the Operator as a "wakeel" (agent) to manage the Takaful funds on behalf of the Certificate Holder in accordance with the Shariah principles.

As a "wakeel", the operator is entitled to a wakalah (agency) fee for executing two main tasks: managing the Takaful funds, namely Participant Risk Fund (PRF) and Participant Investment Fund (PIF); and facilitating the investment of the takaful funds.

Taawun Taawun means corporation or solidarity (based on the spirit of brotherhood, righteousness and piety). In Takaful context, ta'awun is referred to as mutual help and indemnity where the participants are committed to making donations with the intention to help each other against any defined perils within the Takaful scheme.

Updated: Feb 22, 2021
Cite this page

AMMETLIFE TAKAFUL. (2019, Nov 28). Retrieved from https://studymoose.com/ammetlife-takaful-example-essay

AMMETLIFE TAKAFUL essay
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