Copyright © 2022 . All rights reserved.
Last updated on: May 26, 2022
As we grow older, get married, build families and start businesses, we come to realize more and more that Family Takaful is a fundamental part of having a sound financial plan. Depending on your type of plan, Family Takaful is easily affordable, which means there’s no excuse not to get coverage now. Plus, over the years, you’ll find comfort in knowing money will be available to protect your loved ones in case of any unfortunate event. Planning ahead would enable them some relief particularly in the event of the bread winner’s demise resulting in loss of regular income.
The word Takaful is derived from the Arabic verb Kafala, which means to guarantee; to help; to take care of one’s needs. Takaful is a system of Islamic insurance based on the principle of Ta’awun (mutual assistance) and Tabarru (voluntary contribution), where risk is shared collectively by a group of participants, who by paying contributions to a common fund, agree to jointly guarantee themselves against loss or damage to any one of them as defined in the pact. Takaful is operated on the basis of shared responsibility, brotherhood, solidarity and mutual cooperation
There are many things in life that the average household can live without, but Family Takaful should not be one of those things. The importance of securing your life increases as the number of people in a household increases.
All these problems or unforeseen circumstances could be taken care of by participating in our Family Takaful Product! The coverage provides you with both financial protection and savings growth in accordance with Shariah principles. Adamjee Life’s Barkat plan allows you to invest in Shariah Compliant investment funds, and participate in the protection benefit through a Waqf pool operated by the Adamjee Life Assurance Company Limited – Window Takaful Operations (AL – WTO).
The basic regular contributions are invested in one of the two professionally managed Shariah compliant funds designed to help the savings grow to match the Participant’s choice of personal savings intention.
This is by way of transferring regular nominal contributions (‘tabarru’at’- as Takaful donations) into the WAQF Fund. This WAQF Fund protects your intention to save the agreed amount of as sum covered* over the tenure of the certificate.
* 5 to 200 times of the total Annualized Basic Contribution (Basic Contribution x Mode Frequency = Annualized Basic Contribution).
In addition to Risk mitigation benefits, Takaful offers a unique feature of Surplus sharing to the Participants. Surplus in the Waqf, if any, shall be determined on individual participant basis at the end of each financial year, after maintaining necessary reserves as per the advice of appointed Actuary and Shariah Adviser. The Distributable surplus will be allocated to the PIF of eligible Participants as per defined manner.
Fund Details
Plan Benefits
Optional Supplementary Benefits
Bonus Allocation
Charges
Certificate Term & Eligibility
Basic Contribution Payment mode
Basic Contribution Allocation
Disclaimer
Fund Details
Contributions made towards the Certificate are invested in either of Taameen Fund or Maza’af Fund. You can choose to invest fully in one of the fund that suits your investment strategy. The returns earned after deduction of risk charges, and investment management charges are credited to the unit account balance and accumulate as the certificate holder’s cash value. Funds are managed by a team of expert investment managers who adjust the investment mix in light of economic conditions and investment opportu- nities.
Is a low to moderate risk profile fund that generates stable and secure returns by investing mainly in Sukuk bonds and term deposits in Islamic Banks.
Is a moderate to high risk profile fund that aims to generate higher returns over the long run by investing across a wide range of investments such as sukuk bonds, shariah compliant equities, Islamic mutual funds and term deposit in Islamic banks.
You are entitled to two initial free fund switches at anytime during every certificate year and each subsequent switch would be charged at Rs.300.
Plan Benefits
You have the option to Choose from the different levels of Family Takaful coverage through protection multiple for the same amount of contribution.
In case the covered person dies during the certificate term, the sum covered or accumulated account cash value whichever is higher, will be paid to the beneficiary(ies).
At the time of maturity of the certificate term the person covered will get the amount equal to his/her PIF account value.
Certificate offers the option of making partial withdrawals from your account value. Withdrawals can be made 4 times in a certificate year and are limited to 50% of the net cash surrender value subject to maintaining a minimum balance of Rs. 10,000/-
The certificate offers a free-look period of 14 days, during which you can cancel your certificate by contacting AL – WTO, and have your contribution refunded. However AL – WTO reserves the right to deduct the expenses incurred on medical examination(s) of the person covered in connection with the issuance of this certificate.
By depositing a minimum payment of Rs. 10,000/- (over and above your regular contribution) you can enhance the growth of your invested capital through Investment Booster. Investment Booster payment which has no upper limit will be allocated at 100% in the unit account and can be made & withdrawn anytime during the certificate term to boost your accumulated cash value.
In the unfortunate event of accidental death while performing Hajj, Adamjee Life will provide coverage of Rs. 1 Million to the beneficiary. This benefit is attached to the plan and is free of cost. However, this coverage will cease once the person reaches the age of 65.
This is a value-added feature to cover the inflation impact. Your contribution will increase every year by 5% of the previous year’s contribution with this option. The cash value will also increase accordingly.
Optional Supplementary Benefits
You can enhance the Protection Benefit by selecting any or all of the following optional Supplementary Benefits subject to payment of additional contribution.
In the unfortunate event of the death of the covered person’s spouse during the enforce term of this Supplementary Benefit, the Supplementary Benefits’ sum cover is payable.
On death of the person covered, AL – WTO will pay the initial (un-escalated) basic contribution for the remaining term of the rider, The beneficiary will receive the maturity benefit at the end of the certificate term.
The feature guarantees a lump sum amount payable to the chosen beneficiary in case of death of the person covered.
A lump sum benefit is paid to you in case you are diagnosed with one of the listed 12 diseases during the enforce term of this Supplementary Benefit. The lump sum benefit is additional to your main certificate benefit.
A lump sum benefit is paid to you or your chosen beneficiary in case of acciden- tal death & disability
On total permanent disability of the person covered, AL – WTO will pay the initial (un-escalated) basic contribution for the remaining term of the supplementary benefit or earlier recovery or death.
On the death or permanent and total disability of the person covered due to accident or sickness during the in-force term of this supplementary benefit, AL – WTO shall pay a monthly income benefit for the remaining term of this Supple- mentary Benefit or earlier recovery or death.
A lump sum benefit is paid to your chosen beneficiary in case of accidental death.
Bonus Allocation:
As you continue the participation for longer term you will gain higher rewards in the form of Continuation Bonuses. The extra units will be allocated to your account value. This extra unit allocation is in addition to the basic units of allocations, provided Certificate has been in-force through the regular and timely payment of Contributions, not being lower or less than the initial Basic Contribution and there has been no partial withdrawal taken from the Certificate. The Continuation Bonus allocation is as follows.
| Certificate/ Contribution Year | % of Initial Basic Contribution Allocated to PIF Account |
|---|---|
| 6 | 50% |
| 10 | 50% |
| 15 | 125% |
| 20 | 125% |
| 25 | 125% |
Surrender Charges
| Certificate Fee: | PKR. 125 Per Month |
| Fund Management Charges: | An annual Fee of 1.75% of the Cash Value from the PIF deducted on a monthly basis |
| WakalatulIstimaar Fee: | Year 1: 75%, Year 2: 25%, Year 3: 20%, Year 4 10%, Year 5 Onward: 0% |
| Bid/ Offer Spread: | 5% of all contributions allocated to the unit Account |
| Takaful Contribution: | With reference to attained age and based On the mortality table. A portion equal to 35% of Takaful Contribution will go to Operator’s Sub-Fund as PTF management fee |
| Surrender & Partial withdrawal Processing Fee: | Rs. 350/- |
| Fund Transfer Fee: | The first two switches in a certificate Year Are free. A charge of Rs. 300 will be made For any further switches in that year |
| Mudharib’s Share: | 30% p.a. on investment return of the WAQF |
Certificate Term & Eligibility
| Certificate Terms & Eligibility | |
|---|---|
| Minimum entry age | 18 years (Age nearest Birthday) |
| Maximum entry Age | 65 Years (Age nearest Birthday) |
| Minimum Certificate term | 10years |
| Minimum Contribution paying term | 10years |
| Maximum Certificate term | 25 years or up to age of 85 whichever comes first. |
Basic Contribution Payment mode
| Mode | Minimum Contribution per installment |
|
|---|---|---|
| Mode Annual | Rs. 25,000/- | |
| Semi-annual | Rs. 15,000/- | (Rs. 30,000/- Annually |
| Quarterly | Rs. 10,000/- | (Rs. 40,000/- Annually) |
| Monthly | Rs. 5,000/- | (Rs. 60,000/- Annually) |
Payment Mode: (Annual, Semi-Annual, Quarterly & Monthly)
Basic Contribution Allocation
| Certificate Year | % of Basic Contribution Allocated to PIF Account | Surrender Charges as % of PIF Account Value |
|---|---|---|
| 1 | 25 | 0 |
| 2 | 75 | 0 |
| 3 | 80 | 0 |
| 4 | 90 | 0 |
| 5 & onward | 100 | 0 |
Payment Mode: (Annual, Semi-Annual, Quarterly & Monthly)
Disclaimer
Copyright © 2022 . All rights reserved.
Last updated on: May 26, 2022