Takaful and Life Insurance offer the same objective, which is to protect the life assured or participant. However, there are some major differences between both.
Let’s find out the major difference between Takaful and Insurance:
Takaful: An individual enters the agreement to contribute to a fund that can potentially help those experiencing an unfortunate situation.
Insurance: policy is purchased as personal financial security for an individual, and the insurance company is the risk bearer.
Takaful: investments will follow Shariah principles. It won’t invest in anything that has elements contradicted with Shariah requirements.
Insurance: conventional investment units of insurance will invest based on their assessment of what fits their profiles.
Takaful: If there is a surplus due to low claim rates by the person covered, it will be shared between participants and the takaful operator.
Insurance: Extra money and profits belong to the shareholders of the insurance companies.
FWD Takaful offers plans with a wide range of options for your health and investment needs. Talk to our agents to find out more!