A.   Purpose

This is a savings and protection plan called Salaam Care Family Takaful Plan that assists the participant:

• accumulate wealth targeted at meeting a specified future expense 
• in the event of death or Permanent disability before the expiry or maturity of the contract leave inheritance for their estate (Next of Kin)

Salaam Care Family Takaful Plan is intended to accumulate funds over a specified term to maturity date of the contract. The minimum term would not be less than 5 full years.

B.   Product Features

• A level contribution is paid periodically for a specified sum covered. Each contribution is split into 3 parts:  the Wakalah (Agency) Fees, the Participants’ Risk Fund (Tabarru) and  the Participants’ Investment Fund (PIF). 
• All profits arising from the investment of the Participants’ Investment Fund (PIF) and Participants’ Risk Fund (Tabarru) shall be shared in line with the principle of Mudarabah at a predetermine rate. 
• All surplus (if any) from the Participants’ Risk Fund (Tabarru) after deduction of claims, re-takaful, commission and reserves shall also be distributed proportionately among the participants 
• Benefits are payable either on death or at maturity. 
• Minimum age at entry is 18 years with a maximum age of 60 years. 
• The minimum term of the contract permitted is 5 years.

C.   Target Market

The target for this product is to individual who want to save for a target expenses, like education, marriage, family vacation.

A.   Benefit 

 i. Maturity Benefit 

If the participant survives to the maturity of the plan, the Participant shall receive the balances due to him from his Participants’ Investment Fund (PIF) (investment returns inclusive), and proportionate surplus (if any) of Participants’ Risk Fund (Tabarru).

ii. Death Benefit 

In the event of death of the participant, the operator shall pay the balances due to him from the Participants’ Investment Fund (PIF) (investment returns inclusive), plus a donation of the unpaid amount of contribution instalments for the period from the date of death until the date of maturity of the plan.

i. Permanent Total Disability Benefit

In the event of total loss of both arms or both legs or both eyes shall be considered permanent total disability without prejudice to other causes of permanent total disability. Salaam Family Takaful shall pay to the participant or their named beneficiaries/ representative the balances due to him from the Participants’ Investment Fund (PIF) (investment returns inclusive), plus a donation of the unpaid amount of contribution instalments for the period from the date of permanent disability until the date of maturity of the plan.

There will be 6 months waiting period before the permanent disability benefit is triggered.

 ii. Surrender Value Benefit 

In the event of the policy being surrendered, the participant shall only be entitled to his share of the Participants’ Investment Fund (PIF) and shall relinquish his portion of the Participants’ Risk Fund (PRF) and the Wakalah Fees will be forfeited. 

If the participant surrenders within the first three (3) years of the policy, an administrative fee of 15% of the PIF is charged. 

5% administrative charge is made on the PIF if the policy has been in force for more than 3 years.

A.   Contribution Frequency 

Contributions will be paid either annually, bi-annually, quarterly or monthly

The Takaful contract is deemed to have lapsed if contribution is not paid thirty (30) days after the due date