“Why
it can pay to buy now not later! Your health”
TAKAFUL
The
Concept Of Takaful
The
term takaful means joint guarantee in the Arabic language The takaful
concept can thus be described as a covenant among a group of members
or participants who agree to jointly protect themselves against
financial related losses. A fund is created through the contributions
made by the participants, and is used for compensating members who
suffered losses due to occurrence of disastrous or catastrophic
events. The suffering members will receive a certain sum of money or
benefit from the fund as a form of relief as earlier agreed upon by
the group of contributors .From the above description, we can get the
notion that the fundamental objective of Takaful is to compensate
predefined losses of members from a predetermined fund, it can be
observed that this practice differs from convention / insurance of
which the compensation payment and the fund are not predetermined.
The Muslims consider takaful as a means through which members of the
group pool effort to support each other in times of trouble. This
type of insurance is thus allowed for Muslim as it falls within
Islamic practices.
(Ref:Malaysian
Financial Planning Council)
About
the author:Kertar Singh has joint
Great Eastern Life Assurance in August 1995 as a part time agent.
Became a full time agent
in 2000 after retiring from the army after 22 years.
He deal with all kind of
Insurance from Life Insurances to General Insurances and Will
Writing.
Kertar.en@gmail.com
H.P 013-322 8582
Notes: Reference have
been made from MII and Gela
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