Life Takaful: Multiple Purposes

Life Takaful serves various essential purposes, ensuring that you and your loved ones are protected from unexpected financial burdens. With a range of benefits tailored to meet your specific needs, Life Takaful is a strategic financial tool for both individuals and businesses. There are 8 purposes of Life Takaful.

Beneficiary: Self

  1. Income Replacement

    • Total Permanent Disability (TPD): Provides financial support in the event you are unable to move due to coma (unconscious) or a vegetative state.
      • Minimum Coverage: 10 years of expenses.
      • BONUS: Combine with a Living Trust for enhanced protection.
    • Critical Illness (CI): Offers a safety net in case of a terminal illness diagnosis.
      • Minimum Coverage: 3-5 years of expenses.
      • BONUS: Understand that a Medical Card and Critical Illness Protection serve different purposes and complement each other.

  2. Debt Settlement

    • In the event of debt, utilize the Two-Pronged Strategy: Debt Management for effective solutions.
    • BONUS: Combine with Wasiat for a comprehensive debt resolution approach.

Beneficiary: Others

Heir

  1. Nomination

    • Household Income Replacement ensures cash flow for your family, particularly until your youngest child reaches independence, in accordance with Faraid rulings.
      • Minimum Coverage: 10 years of expenses.
      • BONUS: Combine with Wasiat for a more comprehensive solution. Learn about Hibah Lengkap here.

 

  1. Hibah

    • Provides a gift of cash to loved ones, free from Faraid rulings.
      • Any Amount: You can specify any amount you wish to give.
      • BONUS: Combine with Wasiat for additional security. Learn about Hibah Lengkap here.

 

Non-Heir

Business

  1. Business Succession Plan

    • Ensures that if multiple shareholders are involved, they can sell their shares to one another, preventing disruptions due to the Probate Act and ensuring that inexperienced heirs do not inherit the business.
    • The heirs of shareholders receive a lump sum of liquid cash instead of illiquid shares.

 

  1. Keyman Policy

    • Protects your business in the unfortunate event of a Key Person’s death. It covers additional costs incurred due to their absence, such as hiring external employees to fulfill their duties and managing overhead expenses.

 

Institutions

  1. Bank

    • MLTT Substitute: Provides additional coverage for Mortgage Financing.
    • BONUS: The bank must be assigned as the beneficiary through Absolute Assignment for full effectiveness.

  2. Trustee

    • Takaful Trust: Create a Private Trust Fund for your family, ensuring financial stability that can last for three generations.
    • BONUS: The trustee should be assigned as the beneficiary through Absolute Assignment for optimal management.

Interested in exploring Life Takaful options tailored for you?

Life Takaful is more than just an insurance policy; it’s a versatile financial instrument that ensures security for both you and your loved ones. With its multiple purposes, you can create a comprehensive plan that addresses income replacement, debt management, and estate planning, among other needs.

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