It is an arrangement that provides long-term (usually over a year) protection and potential investment profits to individuals with dependants in case of the former’s premature death, illness, disability or deprivation of regular income during retirement.
How It Works
The Takaful Operator assumes the role of a manager of the Takaful Fund, as well as a Mudarib or Wakil (agent) to invest the contributed pool of funds in Shariah-compliant channels.
A Few Examples
The participants can purchase a policy to protect themselves against defined risks in the field of education, health, mortgage etc. The beneficiaries will receive the benefits arising from death, illness or disability of the policyholder.
Participants can purchase policies for a group (such as for individuals and their families) to assume protection against risks in the field of education, health, mortgage etc. The beneficiaries will receive the benefits arising from death, illness of disability of the policyholder.