Family Takaful

3rd International Conf. & ExhibitionIslamabad – Nov. 2009

Azeem PiraniRegional Manager – Pakistan

FWU AG

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Contents

•What is Family Takaful•Life Insurance in Pakistan•Family Takaful Products•How does Family Takaful Function?•Need of Family Takaful•Powerful Proposition•Conclusion

What is Family Takaful?

• It is an Islamic alternative to conventional life insurance

• The concept is based on the principles of Risk Sharing (as opposed to Risk Transfer)

• Life cannot be insured but the beneficiaries can be financially supported by a system of mutual assistance

Life Insurance in Pakistan

Family Takaful Products?

For Corporate Customers• Group Healthcare for employees• Retirement Income Plans• Salary Continuation in case of employees

death or disability

For Individual Customers• Savings & Protection Plans• Education Plan• Retirement Income Plan• Mortgage Takaful

How does Family Takaful function?

• Participants pool their savings into two separate accounts with the FT Operator

– Into Waqf Pool:• As taburru: to eliminate Riba and make Gharrar &

Qimar ineffective• Nobody owns the Waqf Pool;The FT Operator acts

as its Wakeel• All claims are paid from the Waqf Pool

– Into Participants Investment Account:• Which is unit-linked• Contributions are invested to generate Halal profits

for members

How does Family Takaful function? (cont)

Need of Family Takaful

Against financial loss from:- Death- Disability- Medical Illness

In order to fulfill short-term & long-term needs such as:

- Children’s education and marriage

- Purchasing a new house- Affording Hajj/Umrah Expenses- Retirement

Income, etc

Protection

InvestmentGrowth

Participant Takaful Fund

(PTF)

Participant Investment

Account (PIA)

Powerful Proposition?

Win-Win• The only protection + savings tool• Offering Halal income• Financial protection against specific risks

Surplus Sharing

Conclusion

• Dire need for financial protection in our society.

• Shariah compliant nature will allow it to reach those consumers who would rather have a Halal option.

Jazak-Allah Khair

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