A.   Purpose

To protect a creditor against the loss of loan balance arising from risk of default due to death or permanent disablement of the debtor. 

This is a mortgage protection plan intended to secure Mortgage Finance customers against the financial risk of death/total permanent disability before repayment of the Outstanding Financing Amount.

B.   Product Features 

The product has the following futures;

• The cover is based on the original loan advanced by the creditor to the debtor and payable at the time of disbursement of the loan and subsequently revised on an annual basis or at other time that may be agreed. Single contribution payment is also possible.
• The minimum entry age is 18 years and the maximum cover age is 65 years. Cover may be extended to age 70 on a case-by-case basis. All amounts advanced as loan will be expected to have a maximum term of 30 years.

C.   Benefits

i. Death or Permanent disability Benefit 

• The balance of Sum (loan amount) Covered becomes payable in the event of death or permanent total disability of the participant.
• There is six months waiting period in the event of a claim due to permanent disability to ensure that the disability actually persisted for six months and therefore conclusively deemed permanent and total disability. 

ii. Surrender Value Benefit 

The policy does not provide any surrender value benefit upon discontinuation of payment of contribution at any time.

A.   Profit Sharing

All profit from investment of the Participants’ Risk Fund (Tabarru) shall be shared in the principle of Mudarbah at an agreed rate.

B.   Contributions 

Contributions will be paid on an annual or single basis based on the amount financed, assessed risk including the life covered’s age next birthday (ANB) of the individual lives covered.

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