Family takaful provides you with both a life insurance protection policy and long-term savings for your peace of mind. You or your beneficiary will be provided with financial benefits if you suffer a tragedy.
 
Related Information

Types of takaful

Are you covered?

Dealing with takaful intermediaries

Life insurance
Making a nomination
 
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Read our FAQs on Family takaful  
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  Family takaful works on the basis of mutual help, where all the participants fulfil their obligation in the form of participative contribution (tabarru’). Simply put, part of your contributions in family takaful are used to help other participants who suffer a misfortune, such as death or permanent disability. This fund is known as the Participant’s Special Account (or PSA), which is used to mutually help participants in their hour of need.

But there is more to family takaful. The other part of your contribution is placed in another fund for savings and investment. This is the Participant’s Account (or PA). The savings and investment contributions here will be invested by the takaful operator and the profit will be shared between you and the takaful operator according to a pre-agreed ratio.

At the date of maturity for your plan, you are entitled to share in the net surplus from the fund. The calculation below shows you briefly how the takaful concept can work for you.

Example: A takaful operator has a total surplus (S) of RM4 million and total general contribution (GC) of RM10 million. Your contribution (C) for the year is RM500 and the surplus will be shared between you and the takaful operator at a pre-agreed sharing ratio (PSR) of 50:50. The share of surplus that you will receive is calculated as follows:
 
     
   
     
 
     
  Family takaful covers you in case of death or disability. Should you pass away before your takaful plan matures, the takaful operator will pay to your nominee (wasi) with the following benefits:  
     
  From your Participant's Account (PA)  
  The amount accumulated in your PA plus your share of profits from the date of inception of the takaful plan to the due date of payment prior to death.  
     
  From your Participant's Special Account (PSA)  
  The sum covered under the risk or tabarru' portion.

 
     
  If you survive until the date of maturity, you will be entitled to the following benefits:  
     
 
From your PA : The amount accumulated in your PA plus your share of profits from the investment.
   
From your PSA: The net surplus allocated to you, if any.
 
     
     
 
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.
 
     
 
     
  Some of the important terms used in family takaful 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  
  You will be allowed 30 days' grace period from the due date to pay your takaful contribution. Should you pass away during the grace period, the unpaid takaful instalment will be deducted from your takaful benefits.  
     
  Maturity period  
  You may choose any of the maturity periods that best meet your needs. The periods range from 10 years to 40 years.  
     
     
 
It is important that you understand the terms used in family takaful.If you have any doubts about the meanings of these or other terms, you should ask your agent or the takaful operator. 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 family takaful.These following procedures will however make the process faster and easier for your takaful operator to process your claim.  
     
  In the event of a claim, notify your takaful operator as soon as possible.  
     
  For maturity claim  
  Provide the original copy of the family takaful certificate.  
     
  For disability benefits claim  
  Provide the original copy of the family takaful certificate and the doctor’s report.  
     
  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
   
  In this case, it is important to have a nominee, as it would make claims easier for your beneficiaries.
Learn more on how to make nominations for your takaful and insurance plans here.