Shield Decreasing Term Plan
Takaful Shield Decreasing Term Plan?
Mr. Tahir Hasan is a 35 year old father of three children. He is working as a middle-level
Manager in a Pharmaceutical company and earns enough to meet his personal and family
needs, including the various liabilities he has incurred, such as:
- Repayment of his Home Finance Installments
- Car Ijara Payments, and
- Miscellaneous debts
What if, God Forbid, Tahir unexpectedly passes away?
How will his family/dependants cope up with these debt payments and avoid defaulting
or incurring penalties? Typically, it is done either through one’s life savings
or by borrowing further loans. Both ways mitigate only short-term risks and is never
considered a long-term or permanent solution.
A better, safer, and more dignified way of protecting yourself and your family from
defaulting on your financial obligations due to death is through the Takaful Shield
Decreasing Term Plan.
Once covered through Takaful, Tahir’s family will no longer be liable to pay for
their House Financing and/or Car Ijara liabilities. Instead, Takaful will pay off
the entire outstanding debt amount.
How Will the Plan Work?
Takaful Shield Decreasing Term Plan is a specialized Takaful plan. In this plan,
the amount of Takaful coverage decreases over the term of the plan and may be designed
to tie in with the outstanding amount of your debts.
The participant will have full coverage during the first year. However, this coverage
will reduce each year by a small amount until it runs out completely on term completion.
A lump sum is payable in the event of death to nullify the outstanding debt.
Membership Specifications
|
Participant’s Age Limits at Entry
|
Minimum Age |
Maximum Age |
|
|
20 |
65 |
|
Membership Term
|
Minimum Term |
Maximum Term |
|
|
5 years |
30 years |
|
Minimum Contribution Amount –
|
Single Contribution Plan
|
Rs. 8,000/- |
|
Minimum Contribution Amount –
|
Regular Contribution Plan
|
Rs. 6,000/annum |
Takaful Contribution Table per 1000 of Face Value:
|
Age/Term |
5 |
10 |
15 |
20 |
|
20 |
2.492
|
2.139
|
1.683
|
1.637
|
|
25 |
2.677
|
2.347
|
1.920
|
1.898
|
|
30 |
2.948
|
2.663
|
2.297
|
2.330
|
|
35 |
3.398
|
3.207
|
2.962
|
3.110
|
|
40 |
4.202
|
4.207
|
4.210
|
4.569
|
|
45 |
5.746
|
6.149
|
6.595
|
7.205
|
|
50 |
8.817
|
9.882
|
10.846
|
11.618
|
|
55 |
14.364
|
15.999
|
17.373
|
-
|
|
60 |
22.090
|
24.228
|
-
|
-
|
|
65 |
32.286
|
-
|
-
|
-
|
Note: A plan fee of Rs. 300 will be added to the Takaful Contribution
for calculating Gross Annual Contribution
Example: At the age of 35, Face Value Rs. 2 million and Coverage
Term of 10 years, the Gross Annual Contribution will be calculated as follows:
(Takaful Contribution per 1000 * Face Value) + 300 =
Rs. 6,713
Waiver of Contribution as % of Basic Plan Gross Contribution:
|
Age/Term |
5 |
10 |
15 |
20 |
|
20 |
0.066% |
0.215% |
0.364% |
0.604% |
|
25 |
0.065% |
0.213% |
0.365% |
0.609% |
|
30 |
0.068% |
0.225% |
0.391% |
0.658% |
|
35 |
0.078% |
0.259% |
0.457% |
0.777% |
|
40 |
0.096% |
0.325% |
0.588% |
1.018% |
|
45 |
0.135% |
0.464% |
0.866% |
0.000% |
|
50 |
0.217% |
0.767% |
0.000% |
0.000% |
|
55 |
0.390% |
0.000% |
0.000% |
0.000% |
|