Child Education Takaful Plan (CETP) provides you with protection and long-term savings to finance the higher education expenses of your child. The plan will provide your child with financial benefits if you suffer any set back covered under the plan. The plan also gives your child long-term savings (or education fund), that they can use to continue their studies.
 
Related Information

Dealing with takaful Intermediaries

Types of takaful plans

Child education plan

Making nominations

How to make a complaint and redress avenue
 
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  There are generally two main concepts that are used under Child Education Takaful Plan (CETP).  
     
 
 

Under this concept, the contribution you make for your child is put into two separate takaful funds.
   

The first fund is the Participant’s Account (PA), which is where savings and investment will take place. The profit from PA is shared between your child and the takaful operator according to a pre-agreed ratio.
   

The second fund is the Participants’ Special Account (PSA), which is the fund that is used to fulfil your obligation of mutual help. The PSA is the fund which will be used to help out participants in unfortunate circumstances, such as death or permanent disability.
   
 

Unlike concept 1, in concept 2 your contribution made on behalf of your child will be placed into a single fund called Participants' Special Accounts (PSA). All of your contribution will be invested by the takaful operator.
   

When your children reach the agreed age of maturity as stated in the plan, they are entitled to the sum covered under the plan (given under the Shariah concept of hibah ) plus the share of net surplus from the fund, if any.
 
 
     
     
 
     
  CETP is a plan, which provides you with protection and long-term savings to finance higher education expenses of your child. Your child will be provided with financial benefits in the event you suffer a set back covered under the plan. These benefits will be paid as follows:  
     
     
 

The benefits will be the agreed sum covered under the plan (given under the Shariah concept of hibah) plus the accumulated surplus sharing.
   

If your CETP comes with an investment-linked feature, your child will receive the value of the investment units in addition to the agreed sum covered under the plan.
 
     
     
 

The contribution of the plan will be paid by the takaful operator on your behalf until the maturity date of the plan.
   

On the maturity date, your child will be entitled to receive the amount accumulated in the PA, surplus from the PSA and share of profits from investment (if applicable).
   

However, if all the contribution goes into PSA, depending on the takaful scheme participated, the funds will either be paid to your child or directly to an account under your child's name and managed by an appointed trustee. The sum payable is the benefit (on the basis of hibah) together with the accumulated surplus sharing (if any) upon maturity.
 
     
     
  Depending on the takaful scheme participated, you, as the certificate holder, will:  
     
 

Receive the sum covered under the plan (given under the Shariah concept of hibah) plus the accumulated surplus sharing; or
   
Surrender the certificate for a surrender value; or
   
Nominate your other children as the participants.
 
     
     
  Usually, a CETP will not cover the following:  
     
 
 
Attempted suicide or self-inflicted injury whether you are sane or insane.
If you breached the law.
If you provoked an assault.
If you were under the influence of drugs or alcohol.
If you were to suffer from AIDS or HIV.
Any other causes prohibited by Shariah Law.
 
     
 
     
  Some of the important terms used in Child Education Takaful Plan (CETP) are:  
     
  Contribution  
  This is the periodic sum of money that you pay to the takaful operator. You can choose either to pay on a monthly, quarterly, half-yearly or yearly basis.  
     
  Grace period  
  This is the period allowed for you to pay your takaful contribution. Generally, you have 30 days from the due date to pay your takaful contribution. Should you pass away during the grace period, the unpaid takaful installment will be deducted from your takaful benefits.  
     
  Maturity period  
  Usually, the CETP matures when your child reaches the age of 18 to 22 years.  
     
     
 
If you have any doubts about the meanings of these or other terms, you should ask your agent or the takaful operator to explain them to you. As the certificate is a legal contract, the meanings used in the certificate will apply when a claim is made.
 
     
 
     
  When applying for a takaful plan :  
     
 
Do disclose all material facts on the risks to be covered.
Do read the ‘Important Notice’ on the Proposal Form.
Do answer all questions fully and accurately.
Do complete and sign the Proposal Form yourself.
 
     
 
Don’t leave any question in the Proposal Form unanswered.
Don’t use ticks & dashes to answer the questions requiring full answers.

Don’t withhold or misrepresent any material fact. Otherwise, the plan issued will be void, meaning that the claim can be repudiated.

Don't sign a blank application form.
 
     
  To ensure your takaful plan remains valid :  
     
 
Do comply with all the terms, conditions and endorsements of the certificate.
Don’t forget to pay the contribution within the terms allowed by the takaful operator.
 
 
     
  The takaful operator will pay you or your nominees, subject to the terms and conditions of your Child Education Takaful Plan (CETP).  
     
  For maturity claim  
  Provide the original copy of the family takaful certificate.  
     
  For death claim  
  The nominee is required to provide the following documents:  
     
A certified copy of the death certificate
A photocopy of the deceased’s identity card
Original family takaful certificate
Proof of claimant’s relationship with the deceased
Other documents as requested by the takaful operator
 
 
 
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For more information on child education plan takaful, please download our booklet or contact
a takaful operator to learn more about the policies they offer for child education plan takaful.