Kefayat Plan

Protect your future from the unforeseen

Without money put away smartly in savings and/or investments along with due risk coverage, an individual opens him/herself up to the unforeseen.

Why Kefayat Plan?

During the current ever-changing global economic environment, not having a plan to pay for any emergency need can create severe financial burden on an individual. So be it your house renovation, sudden loss of employment or any additional medical expenses smart savings with risk coverage always comes in handy.

Keeping the above mentioned scenario in view and in line with the Shariah principles, Adamjee Life – Window Takaful Operations introduces Kefayat Takaful Plan. A family takaful plan that not only mitigates your unforeseen risks but also provides an avenue for savings all the while following the principles of Shariah.

Kefayat Takaful Plan provides the Participant access to professionally managed Unit Linked Funds with the benefit of Family Takaful Coverage packaged in. The protection benefit is provided through a Waqf pool operated by the Adamjee Life Assurance Company Limited – Window Takaful Operations (AL – WTO).

Why is Takaful?

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.

Plan Details

  • Fund Details

  • Plan Benefits

  • Certificate Benefits

  • Optional Supplementary Benefits

  • Contribution Allocation & Surrender Charge Structure

  • Bonus Allocation

  • Charges

  • Certificate Term & Eligibility

  • Basic Contribution Payment mode

  • Disclaimer

Fund Details

Investment Options

Taameen Fund

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.

Maza’af Fund

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 deposits in Islamic Banks.

You are entitled to two free fund switches at any time during every certificate year and each subsequent switch in that year would be charged at Rs.300.

Plan Benefits

Two Fold Benefits

Savings

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.

Takaful (Protection)

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 45 times of the total Annualized Basic Contribution (Basic Contribution x Mode Frequency = Annualized Basic Contribution).

Surplus Sharing

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.

How your Investment grows in a Shariah Compliant way:

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 opportunities.

Certificate Benefits

Choice of Family Takaful Coverage

You have the option to Choose from the different levels of Family Takaful coverage through protection multiple for the same amount of contribution.

Protection Benefit

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).

Certificate Maturity Benefit

At the time of maturity of the certificate term the person covered will get the amount equal to his/her PIF account value.

Partial Withdrawal

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/-

Free-Look Period

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.

Investment Booster: (Ad-Hoc) / Top-up

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.

Inflation protection: (Indexation)

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

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.

Accidental death & Disability

A lump sum benefit is paid to you or your chosen beneficiary in case of accidental death & disability

Waiver of Contribution Supplementary Benefit (WOC-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.

Contribution Allocation & Surrender Charge Structure

Optional Supplementary Benefits

Certificate/ Contribution Year % of Initial Basic Contribution Allocated to PIF Account Surrender Charges as % of PIF Account Value
1 30 0
2 80 0
3 90 0
4 & onward 100 0

Bonus Allocation:

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 20%
11 30%
16 30%

Surrender Charges

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 : 70%, Year 2: 20%, Year 3: 10%, Year 4 & Onwards 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 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

Minimum Contribution

Mode Minimum Contribution
per installment
Maximum Contribution
Mode Annual Rs. 8,000/- Rs. 24,999/-

Payment Mode: (Annual only)

Disclaimer

Disclaimer

  • This Family Takaful Product is a Shariah Compliant Unit Linked Plan which is subject to investment risk and the cash value of the plan will vary directly with the performance of the unit fund.
  • The investment risk shall be borne by the certificate holder and actual maturity or surrender values may be lower or higher than the projected figures.
  • All applications are processed and approved by AL – WTO, as per their underwriting guidelines.
  • A personalized illustration of benefits will be provided to you by our sales representative. Please refer to the notes in the illustration for a detailed understanding of the various Terms & Conditions.
  • The brochure only provides an introduction to the benefits available under the certificate. A detailed description of how the Certificate works is given in “Partici- pants’ Membership Documents – PMD” which will be provided after the customer avails the Certificate.
  • The past performance of the fund is not necessarily a guide to future performance. Any forecast made is not necessarily indicative of future or likely performance of the funds and Adamjee Life Assurance Ltd., will not incur any liability for the same.
  • A personalized illustration of benefits will be provided to you by our sales representative. Please refer to the notes in the illustration for a detailed understanding of the various Terms & Conditions.
  • The brochure only provides an introduction to the benefits available under the certificate. A detailed description of how the Certificate works is given in “Partici- pants’ Membership Documents – PMD” which will be provided after the customer avails the Certificate.
  • The past performance of the fund is not necessarily a guide to future performance. Any forecast made is not necessarily indicative of future or likely performance of the funds and Adamjee Life – Window Takaful Operations., will not incur any liability for the same.