Takaful Shield

Takaful Shield Decreasing Term?

Mr. Tahir Hasan is a 35 year old father of three children. He is working as a middle-level Manager in a Pharmaceutical company and earns enough to meet his personal and family needs, including the various liabilities he has incurred, such as:

  1. Repayment of his Home Finance Installments
  2. Car Ijara Payments, and
  3. Miscellaneous debts

What if, God Forbid, Tahir unexpectedly passes away?

How will his family/dependants cope up with these debt payments and avoid defaulting or incurring penalties? Typically, it is done either through one’s life savings or by borrowing further loans. Both ways mitigate only short-term risks and is never considered a long-term or permanent solution.

A better, safer, and more dignified way of protecting yourself and your family from defaulting on your financial obligations due to death is through the Takaful Shield Decreasing Term Plan.

Once covered through Takaful, Tahir’s family will no longer be liable to pay for their House Financing and/or Car Ijara liabilities. Instead, Takaful will pay off the entire outstanding debt amount.

How will the Plan Work?

Takaful Shield Decreasing Term Plan is a specialized Takaful plan. In this plan, the amount of Takaful coverage decreases over the term of the plan and may be designed to tie in with the outstanding amount of your debts.

The participant will have full coverage during the first year. However, this coverage will reduce each year by a small amount until it runs out completely on term completion. A lump sum is payable in the event of death to nullify the outstanding debt.

Membership Specifications

Participant’s Age Limits at Entry Minimum Age Maximum Age
20 65
Membership Term Minimum Term Maximum Term
5 years 30 years
Minimum Contribution Amount – Single Contribution Plan Rs. 8,000/-
Minimum Contribution Amount – Regular Contribution Plan Rs. 6,000/annum

 

Takaful Contribution Table per 1000 of Face Value:

Age/Term 5 10 15 20
20                  2.492                  2.139                  1.683                  1.637
25                  2.677                  2.347                  1.920                  1.898
30                  2.948                  2.663                  2.297                  2.330
35                  3.398                  3.207                  2.962                  3.110
40                  4.202                  4.207                  4.210                  4.569
45                  5.746                  6.149                  6.595                  7.205
50                  8.817                  9.882               10.846               11.618
55               14.364               15.999               17.373                         -  
60               22.090               24.228                         -                           -  
65               32.286                         -                           -                           -  

Note: A plan fee of Rs. 300 will be added to the Takaful Contribution for calculating Gross Annual Contribution

Example: At the age of 35, Face Value Rs. 2 million and Coverage Term of 10 years, the Gross Annual Contribution will be calculated as follows:

(Takaful Contribution per 1000 * Face Value) + 300 = Rs. 6,713


Waiver of Contribution as % of Basic Plan Gross Contribution:

Age/Term 5 10 15 20
20 0.066% 0.215% 0.364% 0.604%
25 0.065% 0.213% 0.365% 0.609%
30 0.068% 0.225% 0.391% 0.658%
35 0.078% 0.259% 0.457% 0.777%
40 0.096% 0.325% 0.588% 1.018%
45 0.135% 0.464% 0.866% 0.000%
50 0.217% 0.767% 0.000% 0.000%
55 0.390% 0.000% 0.000% 0.000%