A.   Purpose

Salaam Hajj and Umrah Family Takaful Plan is intended to:

• accumulate funds for the sole purpose of funding pilgrimage to the Islamic religious holy land at an appointed time. 
• accumulate wealth targeted at meeting a specified future expense 
• in the event of deathbefore the expiry or maturity of the contract leave inheritance for their estate
• Permanent disablementor receive a lump sum during incapacitation.

B.   Product Features

• A level contribution is paid periodically for a specified sum covered. 
• All profits from the investment of the Participants’ Investment Fund (PIF) and Participants’ Risk Fund (Tabarru) shall be shared in 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, permanent disability or at maturity. 
• Minimum age at entry is 18 years with a maximum age of 65 years.

C.   Benefits Payable

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 beneficiary 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.  Loss shall mean with regard to arms and legs dismemberment by physical separation at or above the wrist and ankle or loss of use of both hands, both feet or one hand and one foot; with regard to eyes, total and irrevocable loss of sight.

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

i. 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 and shall relinquish his portion of the Participants’ Risk Fund (PRF). 

If the participant surrenders within the first three (3) years of the policy, an administrative fee of 10% of the PIF is charged. 

No administrative charge is made on the PIF if the policy has been in force for more than 3 years.

ii. Partial Withdrawal Benefit 

Partial withdrawals are allowed only for policies that have been in force for a minimum of 3 years and are allowed for up to a maximum of 5 times over the duration of the policy.

A minimum of three (3) years interval is allowed between each withdrawal subject to a maximum of 50% of the Participants’ Investment Fund (PIF) balance at such time. 

An administrative fee of 2.5% is charged per withdrawal.

A.   Contribution Frequency 

Contributions will be paid 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.