FAQs Takaful

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[accordion Title=”What is Takaful?”]

Takaful is a mutual arrangement between the parties in which they agree to provide material assistance to one another or a group, in time of misfortune. It is a Shariah compliant way of safeguarding oneself against future financial losses. A Takaful product assists Participants to share their risk on the basis of cooperation, brotherhood, mutuality and solidarity for a common good.

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[accordion Title=”What are the key components of Takaful?”]

The key components of Takaful are as follows:

  • Individuals in the community come together on a common platform and contribute into a Waqf Fund, operated by a Takaful Operator (us), to protect themselves against future financial losses.
  • The Takaful Operator acts as an ‘administrator’ of the Waqf Fund and carries out its role in the form of a Wakeel (Manager);
  • Any Participant who suffers or incurs a financial loss is compensated from the Waqf Fund.
  • At the end of every year, any excess amount (Surplus) left in the Waqf Fund after paying off claims and meeting expenses may be distributed amongst the participants as per the advice of the Shariah Advisor and the Appointed Actuary.

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[accordion Title=”Is Takaful meant for Muslims only?”]

No. Takaful is catered to all races and religion and individuals who are interested to invest for security and protection of their loved ones.

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[accordion Title=”What is Takaful Operator?”]

Takaful Operator is an organization which manages Takaful Fund and takes up the responsibility of determining contribution amount, collection of contributions and paying claims to eligible Participants. In this role the Takaful Operator charges ‘Wakala’ fee for its services.

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[accordion Title=”What are the controlling documents for Takaful as per the regulation?”]

Following are a set of controlling documents for Takaful:

  • Insurance Ordinance 2000
  • Insurance Rules 2002
  • Takaful Rules 2012

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[accordion Title=”Who is the regulator for Takaful in Pakistan?”]

Securities and Exchange Commission of Pakistan is the regulator for all insurance and Takaful companies in Pakistan.

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[accordion Title=”What is meant by Contribution?”]

Contribution means the amount payable by the participant to an operator under a Takaful contract.

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[accordion Title=”What is Wakala Fees?”]

The term ‘Wakala’ (Agency) is derived from the word ‘Wakeel’ (Agent). It is the fee incurred by a Takaful Operator from the Participants Takaful Fund to manage the Takaful Fund.

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[accordion Title=”What is meant by Participant?”]

Participant means a person who participates in a Takaful scheme and to whom a Takaful Contract is issued.

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[accordion Title=”What is meant by Hemayah?”]

Hemayah defined as ‘protection’ in Arabic, is a policy that provides support to protect your family’s future on every step of the way.

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[accordion Title=”Why choose Hemayah EFU Life’s Takaful Savings Plan?”]

Hemayah EFU Life Takaful Savings Plan is Shariah Compliant investment and protection mechanism that provides you a valuable coverage as well as an opportunity to accumulate your savings from medium to long term.

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[accordion Title=”Who is the Takaful Operator?”]

EFU Life is the Takaful operator for EFU Life’s Takaful Savings Plan which is one of the largest life insurance companies in the private sector. It is operating in Pakistan for more than 20 years and is among one of the largest fund managers in Pakistan.

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[accordion Title=”How do I know which Takaful plan is best for me?”]

We suggest that you talk to our takaful agent and they will then explain you various types of takaful products that will best suit your financial needs.

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[accordion Title=”What is an investment linked plan?”]

An investment-linked plan is a plan that combines investment and protection into the plan. The contributions that you pay provide coverage not only for your protection needs, but will also be invested in a Shariah Compliant investment fund that will grow your investment portfolio.

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[accordion Title=”What’s the frequency of the contribution?”]

The frequency of contribution can be selected annually, semiannually, quarterly and monthly depending upon the convenience of the participant.

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[accordion Title=”What is the level of Takaful benefit I can apply for?”]

The Takaful benefit depends on your total contribution, health condition, age and the term of the membership.

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[accordion Title=”How are the contributions invested?”]

The contributions are invested in Shariah compliant mutual fund i.e. Takaful Growth Fund. The investments have the approval of the Shariah Advisor of EFU Life and are managed by EFU Life itself.

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