LIFE INSURANCE

LIFE INSURANCE is a contract between an insurer and a policyholder. A life insurance policy guarantees the insurer pays a sum of money to named beneficiaries when the insured policyholder dies and/or suffered total permanent Ldisability, in exchange for the premiums paid by policyholder during their lifetime.

There are

-CONVENTIONAL LIFE - base on commercial factors only

- subject to govenrment laws only

-capital of the premium for conventional insurance is invested in funds and investment channels that are not necessarily shariah compliant.

-has elements of gambling and uncertainty

-risk is transferred and passed on from conventional insurance provider

-TAKAFUL - based on mutual cooperation

-subject to Shariah laws and government laws

-takaful plans holders and shareholder's capital can only be invested in Shariah compliant investment funds.

-free from Riba (interest),Gharar(uncertainty) and Maysir(gambling)

-Risks are shared and distributed among Takaful participants who agree to jointly assume risk.