The word Takaful is originated from the Arabic root word kafala. It means to take care of one’s need. The word Takaful itself stands out for guaranteeing each other or joint guarantee. It is an arrangement based on mutual understanding under which Takaful participants agree to contribute to a common fund providing for mutual financial benefits payable to the Takaful participants or their beneficiaries on the occurrence of pre-agreed events.
A Takaful policy gives you shariah based protection scheme and interest free returns on your investment, without conflicting with your religious beliefs. This life insurance scheme provides you every benefit of regular life insurance, all while ensuring your money is invested in 100% Shariah-based avenues.
The protection or coverage in a Takaful insurance policy is generated from the fund which is credited from the participant investment fund to the participant risk fund is used to assist the Takaful participants in the event of any misfortune. Payment of the contribution is allocated to the participant investment fund after subtracting fees. The operator manages and invests the allocated contribution in shariah compliant securities. The profits from the investment performance is retained in the fund for the benefit of the participants.
If there is net surplus at the end of the financial year, it is distributed between the participants and the operator in the agreed ratio based on the type of Takaful plan, given that the participant did not make any claim or receive any benefits payable.
If you hold your religious belief profoundly, a Takaful DPS policy is one avenue you can explore. In the context of Bangladesh, where DPS policies are gaining popularity, Takaful insurance has potential to gain a sizable market share by leveraging the increasing popularity of islami insurance policy among the people.
Abiding by the rules and regulations of Islamic law and Shariah guidelines of the regulatory authority, MetLife Bangladesh is the first insurance company in the country to introduce Shariah compliant insurance policies. The Central Shariah Board of Bangladesh is working as advisers to the insurance companies of the country to make sure true practice of halal insurance is being developed side by side with the traditional insurance selling. Ever since the introduction of the Takaful insurance products, MetLife Bangladesh came up with different islami insurance policies to cater the needs of the customers. Know more about MetLife Takaful DPS insurance policy from here.