Can non-Muslims apply for Takaful?
Takaful is often perceived in a jaundiced light, largely due to its religious connotations. Many know of it, but choose not to opt for it due to lack of knowledge. Non-Muslims often perceive takaful as only for Muslims. So the question is, can non-Muslims participate in Takaful?
What does Takaful mean and why it is not only for Muslims
For an in-depth understanding, the first question to ask is “what is the concept of takaful?” Takaful is known as one of the wealth instruments that based on cooperation to provide coverage/Takaful benefit in the event of misfortunes. The word "Takaful" comes from the Arabic word "kafalah," which means mutual guarantee.
Takaful operates on the principles of cooperation, mutual assistance, and shared responsibility. It is based on the concept of Tabarru'. The concept of Tabarru' in takaful means donation. Certificate holders voluntarily contribute to the takaful fund, which is then used to pay benefits to those who suffer a loss.
While Takaful is often associated with Islamic finance, it is not only limited to Muslims. Despite this misconception towards Takaful, it is a fact that Takaful principles can be applied to any group to create a risk-sharing mechanism.
Many non-Muslims around the world are recognising the benefits of takaful and are using it as an alternative to conventional insurance. This is because Takaful is often seen as more ethical and socially responsible than conventional insurance, as it promotes the principles of mutual cooperation and shared responsibility.
Types of coverage under Takaful
There are several Takaful plans such as Family Takaful, Health Protection, Future Goals, Online Takaful Plans and more. As for our health protection Takaful plans, they ensure you have access to proper healthcare solutions. Our plans can suit your needs, age, group, and financial situation. Turn your dreams into reality with our future goals plans that help you grow your savings while getting the necessary protection and coverage for your life. Our online Takaful plans allow you to sign up for a comprehensive protection plan without much hassle. Just a few clicks and you’re all covered. Our health/medical protection can accommodate over 50 major critical illnesses from adults to children. As for our family Takaful plans, they focus on coverage for death, total permanent disability, hibah.
Other misconceptions related to Takaful
Despite the benefits, there are some misconceptions about takaful that persist in some circles. Besides some believing takaful is only for Muslims, there are those who think takaful is more expensive than conventional insurance. However, takaful can be more cost-effective compared to conventional insurance, as it is based on the principle of mutual cooperation and risk-sharing, which can lead to lower costs for individual participants.
Another misconception is that takaful is not as reliable as conventional insurance. Takaful companies must maintain reserves and meet regulatory requirements to ensure that they are financially stable and able to fulfil their obligations to certificate holders. Many think Takaful provides less benefits, returns or coverage however, that is not the case. Great Eastern Takaful Berhad has 4 shariah compliant funds which consist of a fund that invests in Islamic fixed income securities (i-Makmur), a fund where investments are in Shariah-compliant equities (i-Mekar), a fund which invests in a mixture of Shariah-compliant equities (i-Majmuk), Islamic fixed income securities and Islamic deposits and a fund which invests in an international portfolio of Shariah compliant equities and Shariah-compliant equity related securities of companies with good growth potential (i-Ekuiti Global).
With its stability and socially conscientious elements, more and more people, both Muslims or otherwise, are exploring it as a financial instrument to complement their portfolio and manage their risks. Learn more with Great Eastern Takaful Berhad today!