Common Misconceptions About Takaful
A lot of misconceptions about Takaful insurance prevail around us. That makes complete sense since no one teaches Takaful to us like we were taught math back in school. But don’t worry, it is never too late to learn. In this blog post, we aim to clarify some common misconceptions about Takaful to enable you to make sound financial decisions. Before further proceeding, let’s establish the basic concept of Takaful. It is Shariah-compliant insurance. In case of loss, you will receive a reimbursement. It is exclusive of riba and gharar, unlike conventional insurance.
The following are some of the most common misconceptions about takaful:
‘’I am too young to get Takaful’’
Takaful has no age limit. You can be in your 20s or even in your teens when you get Takaful. Everyone wants to have a solid financial foundation for their future. Having the proper tools is the first step in establishing a solid financial base in your twenties. Takaful is one of the most essential tools that you will require all along the way to have a smooth journey.
There is no better time to plan out things for your future than the present time. The earlier you start planning the more time you get to peacefully make your decisions.
You may feel that your current earnings are low and you cannot pay a big amount of money right now. In reality, you don’t need to give out mammoth sums in order to get takaful when you are young. You can pay a tiny amount to invest in your future through Takaful insurance.
The earlier you get takaful, the greater return you get. In simpler words, you have to pay a lesser contribution if you start participating in takaful at a younger age, whereas, if you take takaful at an older age, your contribution would be higher.
‘’Normal insurance is better than Takaful’’
Takaful is for everyone! Let’s list down some of the advantages for you:
Takaful is socially-responsible, ethical and supports the environment
You can rest assured that your investment would not be used in any unethical, socially irresponsible, or environmentally harmful activities. Exorbitant interest rates and gambling are two such examples.
Additionally, only investments that comply with Shariah are eligible for Takaful deposits. These contributions can be used to fund sustainable environmental programs, eliminate poverty, or offer social infrastructure and services.
Takaful can get you cashback from the fund surplus
You and your fellow contributors can receive any unused contributions to the Takaful fund. This could come in the form of cash distributions, cash dividends, or discounts on your future donations to Takaful.
However, a gentle reminder that Takaful cashback isn't always a given. The sum might also change based on how well the Takaful fund invests and how much is claimed in the future. For further details and clarification, you may discuss it with your Takaful operator.
Takaful favors the community through mutual understanding
By enrolling as a Takaful participant, you become a member of a group that helps one another out financially. When a neighbor, coworker, or friend signs up to participate in Takaful, you all form a community. If anyone in the community faces loss that person is reimbursed through a mutual decision.
Your neighbor, coworker, or friend has your back, and you do too. If having a strong feeling of community is essential to you, try Takaful to see if it makes you happier.
‘’I have medical insurance from work, I don’t need Takaful’’
You must keep in mind that you are only covered by employer insurance while you are an active employee of your company. Your coverage expires if you leave that company (or, worst-case scenario, are fired). After that, if something horrible occurs, you are no longer covered.
In certain medical conditions, you might have to leave work and rest, which will automatically result in you paying a hefty amount of money to the hospitals.
Therefore, having personal Takaful insurance ensures that changes in your employment position won't have an impact on your coverage. If you have an accident or get extremely ill, you are always secured financially.
As the famous saying goes, ‘’better to be safe than sorry’’, make sure you are covered under a good Takaful plan as it is the best we could do to avoid the uncertainty of risks in the future.
‘’Takaful is only for Muslims’’
Although Takaful has its roots in Arabic culture, it is accessible to both Muslims and non-Muslims. If you are not a follower of Islam, there are no constraints on your ability to take advantage of a Takaful plan. Regarding background, race, or religion, it is non-discriminatory.
The term “Takaful” comes from the Arabic term for "mutual assurance," offering security based on Islamic law. However, adhering to Islamic standards means avoiding unethical behaviors like extreme uncertainty (or gharar), exorbitant interest rates (or riba), and gambling (or maysir).
We hope this blog helped eliminate some of the misconceptions you may have had earlier. If you are looking for a reliable Takaful plan that is technologically advanced too, Takado can be the right fit for you as it is powered by blockchain technology. It is a systematic approach to decentralize investments. It uses blockchain technology to generate smart contracts that provide liberty to the insurer and the insured, both. This ensures the highest level of data safety such that no third party can intervene in it.
Start planning for your future today.
