Takaful benefits & payout: Ways to use it wisely

Many are already aware of the benefits and payments of Takaful protection because they are confident that Takaful protection can help to secure the future of their family members during their passing later. However, there are few people who are still hesitant to participate in Takaful protection plan because they think that Takaful only benefit their heirs, not them as contributors. As a contributor who pays Takaful contributions monthly, you sure want to enjoy the benefits of Takaful too, not only when making a claim.

Did you know that there are Takaful protection plans with savings that benefit not only your heirs, but you as a contributor can enjoy its benefits too while you are still alive. Interesting isn’t it? It not only provides protection to you and your heirs, it even provides returns that you can use to achieve certain goals in your life. As the famous saying goes, kill two birds with one stone.

There are various of Takaful protection plans with savings offered in the market, however the best plan is definitely the one that gives a high return during maturity. Let’s see how you can use payments from a plan like this, so that you can plan your financial more carefully. The sooner you participate in Takaful protection, the sooner you can enjoy the returns!

Debt settlement

Almost all of us are in debt. In general, debt is divided into two types, namely good debt and bad debt. Good debt is a debt that will bring returns in the future such as home financing and business financing. Meanwhile, bad debt is a debt attached with high interest rates such as credit cards and personal financing. Regardless of good or bad debt, it is still a debt that requires a long-term commitment that will inevitably affect a person's financial status in case of improper management.

Therefore, a protection plan with savings can be a way to free you from the shackles of debt as you age. If you are still alive and do not make any claims during the coverage period, you will get a sum of money when your Certificate matures. You can utilise the money to pay off your debts so you and your family can enjoy a peaceful and comfortable life without the burden of debt.

Plan your finances in advance to achieve your goals. If you are determined to pay off all your debt by the age of 50, you should immediately contribute no later than the age of 30. By joining a Takaful protection plan with savings, you only have to pay a contribution of 5 or 10 years, according to your ability, for protection of 20 years. The earlier you contribute, the cheaper the monthly contribution payment, thus achieving your goal of becoming a debt free person at the age of 50.

Performing Hajj

Performing Hajj is the fifth pillar of Islam that is compulsory for every capable Muslims. You certainly want to fulfil your obligations as a Muslim. However, the cost of performing Hajj is increasing year by year. Also, you may have dreamt of performing Hajj with your spouse or parents if they have not yet had the opportunity to perform it. Hence, the expenses will certainly cost you tens of thousands of ringgit. If you do not plan it carefully, how would you be able to set foot in the holy land of Mecca?

Fret not. By participating in Takaful protection benefits with savings, you can turn your dreams to reality. You do not have to borrow or sell your property for the sake of performing Hajj as some people do. There are many Takaful protection plan with savings available out there but you have to make sure that you choose a plan which offers additional benefits such as investment booster benefit and maturity booster benefit that gives you double returns. Not only performing Hajj, but you can also use the booster benefit payment to travel with your beloved family. Most importantly, there is no additional debt.

Retirement fund or child education

According to a study conducted by Khazanah Research Institute released in December 2020, the average life expectancy for Malaysians is between 72.6 to 77.6 years. This means that a person has an estimated 12 to 17 years of life after retirement. It is a relatively long period of time to continue living without a fixed income. Try to imagine your life after retiring at the age of 60, how would you like to get on with life without any fixed income? With the uncertain economic situation and the rising prices of essential goods every year, could you afford to live comfortably after retirement?

If you are now in your 40s and think it is too late to contribute in a Takaful protection plan with savings, you are wrong. It’s never too late to plan your finances and take immediate action to ensure your life after retirement is more secure as this plan offers flexible contribution payment periods and coverage. For example, if you are now 40 years old, you can choose to pay a 10 -year contribution for 20 -year coverage. So, when you turn 50, you have settled the contributions and when you reach the age of 60, you will receive a benefit payment that can be used to cover your cost of living after you retire. You no longer have to look for work or depend on your children to get on with life. Easy, isn't it?

In addition to retirement fund, you may also use them as your children’s education fund. You can choose to contribute to Takaful protection with savings plan for your child so that they are also covered in case of misfortune befalls them, and at the same time, they also receive benefit payment when their Certificate matures. It’s a wise move because when the time comes, you don’t have to bother making a bank loan, applying for a scholarship or borrowing money from others for the purpose of pursuing your child’s education. Without any financial burden, the dreams of your child and family are achieved.

Fulfilling life goals

Everyone definitely has dreams and goals in life. No matter how easy or difficult a dream is, you will definitely work hard to achieve it, only time will tell. Have you ever thought that a Takaful protection plan with savings can make your dreams come true?

As the Takaful protection plan with savings are flexible, you are free to choose the contribution and coverage period according to your affordability and the time period that you set yourself. For example, you aspire to have your own business since you are still young, but do not have enough capital to start a business. You are also unable to apply for financing due to the relatively high monthly financial commitment.

Through a Takaful protection savings plan, you can set a time when you want to achieve that goal. You can choose to pay contributions for 5, 10 or 20 years for coverage of 10, 15 or 20 years. So, when your Certificate matures, you can use those payments to achieve your dreams - start a business, travel around the world, continue your studies or whatever you dreamed of without creating new debt. It's fun!

There are many ways for you to use Takaful benefit payments. Apart from the things mentioned above, you are free to use it for any other purposes. Apparently, Takaful coverage is not only limited to health or death coverage, even surviving contributors can benefit from it.

Look for a Takaful protection plan with savings that offers high maturity benefit payments as well as other booster benefits that can give you optimal returns so that you can achieve your financial goals and realise your life aspirations. You can calculate the amount of cover you need by using the Retirement Takaful Calculator.