Plan 01: Biennial Family Takaful Scheme (With Profit)

This is one of the most popular and flexible plans designed for Takaful Participants who require periodic liquidity. Unlike standard plans, this scheme provides the Face Value (FV) in multiple installments during the term, making it easier to manage significant life events or financial needs.

1. Key Terminology Used
  • Takaful Participant: The individual who joins the scheme to share risks with others.
  • Contribution: The amount paid by the participant (instead of ‘Premium’) to the Takaful fund.
  • Face Value (FV): The total Sum Covered/Assured agreed upon at the start of the policy.
  • PIF (Participant Investment Fund): The portion of the contribution invested for the participant’s savings and periodic installments.
  • PTF (Participant Takaful Fund): The “Risk Fund” where a portion of the contribution is donated (Tabarru) to help fellow participants in case of death or disability.
  • Ezafi (Supplementary Benefits): Additional riders like DIAB (Accidental Death) and PDAB (Disability) that can be added to the main plan.
2. Payment and Installment Structure

This plan is available for terms of 10, 15, or 20 years. A specific percentage of the Face Value is paid every two years, starting after the 4th year.

A. 10-Year Term Plan
  • At the end of Year 4: 20% of the Face Value (1st Installment).
  • At the end of Year 6: 20% of the Face Value (2nd Installment).
  • At the end of Year 8: 20% of the Face Value (3rd Installment).
  • At Maturity (Year 10): The remaining 40% of the Face Value plus all Earned Profits/Bonuses.
B. 15-Year Term Plan
  • Installments are paid at 15% of the Face Value every two years (Totaling 75% in installments).
  • The remaining 25% plus profits are paid at maturity.
C. 20-Year Term Plan
  • Installments are paid at 10% of the Face Value every two years (Totaling 80% in installments).
  • The remaining 20% plus profits are paid at maturity.
3. Benefit Features
Death Benefit (Protection via PTF)

If the Takaful Participant passes away before the maturity of the policy:

  • The Full Face Value plus Earned Profits will be paid to the nominee.
  • Important: This full amount is paid even if the participant has already received one or more installments previously. This is the beauty of the PTF (Risk Fund), providing total security to the family.
Maturity Benefit (Savings via PIF)

At the end of the selected term, the participant receives the remaining percentage of the Face Value along with the accumulated profits generated from the Participant Investment Fund (PIF).

Ezafi (Riders/Add-ons)

Participants can enhance their coverage by adding:

  • DIAB: Double indemnity for Accidental Death.
  • PDAB: Permanent Disability and Accidental Benefit.
4. Tax Benefits
  • Tax Rebate: Contributions paid towards this Takaful scheme are eligible for tax rebates under current government regulations.

Summary: This plan acts as both a savings tool and a safety net. It allows the Participant to enjoy their money while they are alive through periodic installments, while ensuring the PTF provides the full-Face Value to their family in the event of their absence.