There is no way to prepare for unforeseen circumstance. Everything you know about life or living could change in an instant, in a second. Indeed, life is that unpredictable. Whilst it is not the best thing to talk about, the worst thing to happen is not having to have that conversation before it is too late.
This is especially so if you are at the stage of life where you have dependents or people who depend on you to live, like your ageing parents, or your new spouse or new born kids. That said, you can prepare financially in case of the death or Total and Permanent Disability (TPD) of a loved one, including yourself or your spouse who are the main breadwinners.
Introducing the flexible Etiqa Takaful i-Secure family takaful term plan, which gives you higher coverage at extremely affordable contribution rates. Right now, available on PolicyStreet! We took it upon ourselves that we want to be the advocate of life protection in Malaysia, as we understand that one, the penetration rate of life protection in this country is too low, at a point where it is worrisome. Many of us do not have life protection, and if we do, we are very much underinsured. Majority of us have only up to 2 – 3x annual income of life protection as compared to the rule of thumb of 10x annual income that is adopted in some of the developed nations.
What is Etiqa Takaful i-Secure?
Etiqa Takaful i-Secure is a family takaful term plan that gives a lump sum payment to the beneficiary of the person covered in the event of death, and also, gives a lump sum payment to the person covered in the event of a total permanent disability, during the period of cover. You may help to protect those you leave behind financially, by planning ahead. i-Secure applies the Tabarru and Wakalah concept. The beautiful thing about a Takaful product is the encompassing concept itself.
What is the difference between Takaful and Conventional?
Unlike conventional insurance, which risk is transferred from the insured to the insurer, the Takaful Insurance mutual risk is shared amongst the participants. Takaful operations are based upon principles of mutuality, whereby each participant makes a donation to a Takaful fund. In the event of its loss, the participant will receive the amount of its claim.
All investments managed by the takaful operator, in this case Etiqa Takaful, are made in accordance to the Shariah law. These funds are managed by the takaful operator on behalf of the participants, which will be beneficial to the participants.
The takaful operator will also have a Shariah’s Advisory Board who will monitor the activities of the operations in order to ensure that it’s Shariah-compliant. This involves consideration of all aspects of the operations.
Having said that, takaful companies like Etiqa Takaful and conventional insurance companies alike share the same objective which is to provide protection to you, your loved ones and your valuable possessions.
Who is eligible to buy this Etiqa Takaful product?
Since Etiqa Takaful i-Secure product applies the Tabarru and Wakalah concept, it is Muslim-friendly. Having said that, non-Muslims too can apply to embrace the beauty of these two concepts that have stood the test of time.
Specifically, on age, the youngest person that can buy this product is 21 years old and the oldest person that can buy this product is 45 years old. However, you may stay covered and renew your insurance products all the way up to 75 years old!
Well we too encourage people to buy insurance/takaful when they are young, healthy and have less pre-existing illnesses and conditions, that way is to keep the affordability rate. Speaking of pre-existing illnesses, while you need to answer some questions about them before you purchase, Etiqa Takaful i-Secure does not require you to do any medical check-up before you buy this product! So no hassle or costs on getting that check-up like other typical insurance product!
Sorry, only Malaysians can buy this product, which is a common thing amongst all life insurance products out there.
What does this Etiqa Takaful product cover?
Benefit: A lump sum is paid in the event of death and total permanent disability happens to you, due to natural and accidental causes.
Coverage Limit: This is a flexible plan in which you can opt for a minimum sum covered of RM100,000 or any amount higher by every RM10,000, up to RM500,000.
Yes, you can sign up for more than one i-Secure certificate, to coincide with some of the amount and timing of your mortgages. Say, you want to get 2 i-Secure certificates, one to match the amount and timing of your car loans, which matures faster, and the other for your housing loan, which has a longer maturity period and therefore you want a longer cover. However, the total sum covered of all of your certificates for this product must not be more than RM500,000.
Coverage Terms: In terms of coverage terms, you can opt to be covered from a minimum of 5 years, up to 75 years old (age next birthday).
No cash payout: Is this a savings plan? Do you get cash payout or maturity benefit at the end of your term; you ask? Well no, it is not a savings plan, and you don’t get any cash payouts or maturity benefits, which is why it is simple, no frills product and very affordable!
How affordable is affordable?
Well to give you some contexts, here are some example of contribution rates you may be providing for Etiqa Takaful i-Secure! The amount of contribution is depending on a few factors – age, gender and sum covered.
Example 1: A 21 year old young student, looking at a 5-year term cover with RM100,000 sum cover would only need to contribute RM10.75 per month!
Example 2: A 30 year old newly married man, looking for a 10-year term cover with a RM300,000 sum cover would only need to contribute RM41 per month!
Example 3: A 35 year old married woman, looking for a 15-year term cover with a RM500,000 sum cover would only need to contribute on average RM60 per month, averaging all the contribution rates across 15 years.
Do take note that contributions are on a progressive basis, therefore contributions may increase with increased age, due to the inherent higher risk with age.
There you have it. A snapshot of what to expect when you decide on Etiqa Takaful i-Secure product. As part of our special launch, we are giving away RM50 rebate for every purchase of Etiqa Takaful i-Secure, plus a free membership subscription of Bereev, a legacy planning platform that helps you to plan your legacy and make sure that your family will know what to do when your time comes.