Managing Your Money Series | Getting Insurance & Takaful Protection

Insurance and Takaful are financial products meant to safeguard oneself, family and property in the case of a calamity or unpleasant incident.

INSURANCE AND TAKAFUL INFORMATION

There are two sort of insurance.

1. General Insurance

General insurance is just an insurance policy that protects you against losses and damages.

2. Life Insurance

Life insurance is an insurance coverage that pays out a particular amount of money to the insured or their selected beneficiaries following a certain occurrence such as death of the person who is covered.

The main Takaful principle is you give an amount of money to a takaful fund in the form of participatory contribution (tabarru’).

You will undertake a contract (aqad) for you to become one of the participants by agreeing to mutually help each other, should any of the participants suffer any form of misfortune, either arising from death, permanent disability, loss, damage or any other such misfortunes as covered under the takaful you personally undertake.

The takaful protection plan is founded on Shariah principles and provides numerous unique advantages to insurance owners. There are two sorts of takaful businesses: family takaful and generic takaful.

Happy Investing! 😉