What is Takaful?
The Takaful system is based on mutual cooperation, responsibility, assurance, protection and assistance between groups of participants, and its products offer said participants a Syariah-compliant and holistic financial approach to protecting their assets.
“Takaful provides financial protection based on Syariah principles by sharing risks between participants while insurance works on the principle of transferring your risks to the insurance company.
Takaful operators in Brunei Darussalam mainly use Mudharabah and Wakalah models for both general and family Takaful.”
Mudharabah
A contract of profit sharing between Takaful operator and participant.
Wakalah
The Takaful operator acts as an agent (Wakil) of the participant to manage the Takaful fund.
Aside from seeking protection, you may start to think about investing. There is also an insurance product or plan that combines insurance protection with investment! This product is widely known as investment-linked insurance policies (ILPs). ILPs requires you to pay premiums either regularly or in one lump sum which are used partially to provide Takaful or insurance coverage, while the remaining part are typically invested into Collective Investment Schemes (CIS) of your choice.