Every responsible person tries to’ ensure that his / her family is always protected and that their future is safe and secure. Financial Planning is a word synonymous with protection, safety and security. With a host of investment options available, conscious individuals try and opt for products that are in line with their beliefs and code of life.
Keeping in view all of the above mentioned factors, MCB Islamic Bank along with Adamjee Life-Window Takaful Operations (AL-WTO) have designed a product that can be customized to cater your speciﬁc needs in a shariah compliant way!
Our Muhafiz Plus Family Takaful Plan has all the essential ingredients that are required to keep you away from future ﬁnancial worries and protect your family from uncertainties of life.
Muhafiz Plus Family Takaful Plan is a Shariah Compliant regular contribution unit linked family takaful plan. Under this plan a portion of contribution is allocated to Participant Investment Account (PIA). The beneﬁts of the plan are largely linked to the value of the investments of the professionally managed underlying Funds in which a proportion of the contribution is invested.
The word Takaful is derived from the Arabic verb Kafala, which means to look-after; 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.
The regular contributions are invested in one of the two professionally managed Shariah compliant strategies 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 30 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 PIA as per deﬁne manner to the eligible Participants.
Basic 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 suite your investment strategy. The returns earned after deduction of risk charges, and investment management charges are credited to the PIA and accumulate as the participant’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 opportunities.
Is a low to moderate risk proﬁle fund that aims to generate stable and secure returns by investing mainly in Sukuk bonds and term deposit 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 can avail two initial free fund switch overs from one strategy to another anytime during every certiﬁcate year and each subsequent switch would be charged at Rs.300.
You have an 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 PIA value whichever is higher less any partial withdrawals, will be paid to the beneﬁciary(ies).
PKR 2 Million Coverage on Accidental Death during Hajj.
*Coverage will terminate when the participants reaches the age of 65.
At the time of maturity of the certiﬁcate term the person covered will get the amount equal to his/her PIA value + surplus (if any)
On survival of the Person Covered till maturity of the Certiﬁcate, the Monthly Annuity Beneﬁt will be given as per the term selected by the participants. The term can be 5, 10, 15 or 20 years. The units will remain invested over the annuity term.
Certiﬁcate offers the option of making partial withdrawals from your PIA. 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 participants in connection with the issuance of this certiﬁcate (if any).
By depositing a minimum payment of Rs. 10,000/- (over and above your regular contribution) you can enhance the growth of your PIA
through Top up. Top Up payment which has no upper limit will be allocated at 100% in the PIA and can be made & withdrawn anytime during the certiﬁcate term to boost your accumulated cash value.
This is a value-added feature to cover the inﬂation impact. Your contribution will increase every year by 5% of the previous years’ 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 covered is payable.
The feature guarantees as lump sum amount payable to the chosen beneﬁciary in case of death of the person covered./p>
On death of the person covered, AL – WTO Waqf will pay the initial (un-escalated) basic contribution for the remaining term of the supplementary beneﬁt, The beneﬁciary will receive the maturity beneﬁt at the end of the certiﬁcate term.
A lump sum beneﬁt is paid to you in case you are diagnosed with one of the listed 20 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 accidental death & disability.
On total permanent disability of the person covered, AL – WTO Waqf 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 Waqf shall pay a monthly income beneﬁt for the remaining term of this Supplementary Beneﬁt or earlier recovery or death.
Contribution Allocation & Surrender Charge Structure
|Certiﬁcate Year||% of Basic Contribution Allocated to PIF Account||Surrender Charges as % of PIF Account Value|
|3 & onwards||100||0|
Contribution and without utilization of Partial Withdrawal. Bonuses are linked with contribution paying term.
|Certiﬁcate/ Contribution Year||% of Initial Basic Contribution Allocated to PIA|
Certiﬁcate Terms & Eligibility
|Certiﬁcate Terms & Eligibility|
|Minimum entry age||18 years|
|Maximum entry Age||70 Years (Age nearest birthday)|
|Minimum Certiﬁcate term||10 years|
|Minimum Contribution paying term||10 years|
|Maximum Certiﬁcate Term||25 years or up to age of 85 whichever comes ﬁrst.|
|Fund Management Charges||An annual Fee of 1.75% of the PIA Value deducted on a monthly basis.|
|WakalatulIstimaar Fee||Year1: 65%, Year 2: 20%, Year 3 onward : 0%|
|Bid/ Offer Spread||5% of all contributions allocated to the PIA|
|Takaful Contribution||With reference to attained age and based upon the Risk profile & sum at risk, a monthly contribution is transferred into PTF (WAQF) from PIA. A portion, 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 switch overs 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 (if any)|
Basic Contribution Payment mode
|Mode||Minimum Contribution per installment|
|Mode Annual||Rs. 8,000/-|
|Semi-annual||Rs. 8,000/-||(Rs. 16,000/- annually)|
|Quarterly||Rs. 8,000/-||(Rs. 32,000/- annually)|
|Monthly||Rs. 3,000/-||(Rs. 36,000/- annually)|
Payment Mode: (Annual, Semi-Annual, Quarterly & Monthly)