IKHLASlink SECURE TAKAFUL A total protection plan customised to suit your needs - 3076-e_brochure-ENG-v6-r24.indd 1
A total protection plan customised to suit your needs This should be on your checklist: a protection plan that can be customised to suit your lifestyle as well as your wallet. It could be the solution you are looking for; an affordable plan that covers all of your life and health protection needs that is flexible enough to change with your needs. It is the solution that works with you, for you; an intelligent plan that would also help you to potentially maximise the returns on your hard-earned money. 1 3076-e_brochure-ENG-v6-r24.indd 2
IKHLASlink Secure Takaful is the answer you are looking for IKHLASlink Secure Takaful is a comprehensive regular Takaful Contribution Investment-Linked Takaful plan that combines the best of both the protection and investment worlds. This plan offers a holistic package of optional riders covering major health areas such as critical illnesses, personal accidents, hospitalisation and surgical benefit, just to name a few. In addition, you only need to participate in one Takaful Contribution amount to enjoy the entire package 1. One Takaful Contribution to cover all benefits With just one level Takaful Contribution amount, you can choose to cover all or only selected optional riders, making it convenient and hassle-free in budgeting your overall monthly Takaful Contributions 2. Comprehensive protection plan for unforeseen events IKHLASlink Secure Takaful comes with Death and Total and Permanent Disability 3 (TPD) cover to ensure that you are always protected, wherever and whenever. In these unfortunate events, the Basic Sum Covered plus the Net Asset Value (NAV) of the Units in all funds are payable. On the other hand, if you opt to surrender or hold on to maturity of the Takaful Certificate, the NAV of the Units in all funds is payable. IKHLASlink Secure Takaful also provides you with a comprehensive range of optional benefits, such as critical illnesses, accidents, hospital and surgical bills as well as waiver of Takaful Contributions to ensure continuity of your protection coverage. It is entirely your choice which one you choose to add on to your plan. For example, you may select only the rider medical card or combine it with coverage for Critical Illnesses for a wider protection. Your choice of Investment-Linked funds You have the freedom to build a healthy investment portfolio for potentially higher returns 4 over the middle to long term investment horizon by choosing to invest in any of the Investment-Linked funds, depending on your personal risk tolerance and financial goals. Your investments are managed by our professional fund managers allowing you to tap into their resources, investment expertise and experience for your assurance and peace of mind. You need to be aware that low risk is associated with low potential returns, whereas high risk is associated with high potential returns. For details of these funds, please refer to the individual Fund Fact Sheets. 1 Example, with a monthly Takaful Contribution of RM300, you can choose to mix and match coverage for the basic plan and riders. 2 Subject to having sufficient unit balance in the investment account to participate in the optional riders. 3 Before age 65 and subject to a maximum of RM1,500,000 (adult) or RM500,000 (child, 16 years and below) per Person Covered. Standard exclusions apply for TPD as listed in the Takaful Certificate. 4 Past performance is not a guarantee of future performance. Returns are largely dependent on the market performance. Therefore the value of the investment/takaful Certificate benefits may increase or decline based on market conditions. As a result, the balance may rise above or fall below the total Takaful Contribution made. 2 3076-e_brochure-ENG-v6-r24.indd 3
Investment-Linked funds Growth Fund The objective of this fund is primarily to invest in Shariahcompliant listed equities to provide capital growth over the medium to long term through a diversified, but growthoriented portfolio. This fund can attract the investor who is mainly interested in growth and willing to accept higher risk in investment return. Realised gains will be automatically reinvested to provide capital growth and will be reflected in increase in the NAV and thus unit prices. Balanced Fund The objective of this fund is to attain medium to long-term capital growth via investments into Shariah-compliant listed equities, debt securities and other Shariah-compliant assets. This fund is to provide a balanced mix of income and equities. Fixed Income Fund The portfolio seeks to provide capital preservation over the short to medium term period by investing primarily in the Malaysian Shariah-compliant fixed income securities and money market instruments. Other benefits Affordable monthly Takaful Contribution from as low as RM80 a month. Flexibility to change the amount of protection and investment amounts to match your current lifestyle. Top-up feature to maximise your investment potential. 94.75% of the top-up amount will be invested into the Investment-Linked funds of your choice. Partial cash withdrawals whenever you need some urgent cash. The chances of lapse will increase if partial withdrawal is exercised. Switch between investment funds based on your changing risk appetite. DON T FORGET! Takaful Contribution allocation The Takaful Contributions paid are based on the following rates per the illustration below (based on annual Takaful Contribution of RM1,000). The allocated Takaful Contributions will be used to subscribe for units in your selected funds. Takaful Certificate Year 1 2 3 4 5-6 7-9 10 & Above Takaful Contribution amount (RM) 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Takaful Contribution Allocation 40% 40% 60% 60% 80% 90% 100% Allocated Takaful Contribution (RM) 400 400 600 600 800 900 1,000 Charges Some of the units in the investment accounts will be deducted to pay for the fees and charges under the Takaful Certificate. These include charges for the Basic Sum Covered and the other optional benefits. Takaful Certificate Year 1 2 3 4 5-6 7-9 10 & Above Wakalah fee* 60% 60% 40% 40% 20% 10% 0% Comissions 40% 40% 25% 25% 15% 0% 0% * The Wakalah fee is inclusive of commission. If the term is less than 20 years, Takaful IKHLAS will reduce the charges accordingly. IKHLASlink Secure Takaful is based on the Wakalah Model where the company charges a Wakalah Fee as a percentage of the Takaful Contributions for administration of the business. 3 3076-e_brochure-ENG-v6-r24.indd 4
Other Charges Charges Tabarru Charge Fund Management Fee Switching Fee Takaful Certificate Administration Fee Why Takaful IKHLAS? Description Units will be deducted at the beginning of each month. Additional charge may be made on sub-standard cases subject to underwriting 1.00% - 1.50% per annum First five switches free per Takaful Certificate year; subsequent switching at 1% of amount switched subject to a maximum of RM50 per switch RM72 per annum and RM25 charged upon every top-up Partial Withdrawal Fee 1st year 3% 2nd year 2% 3rd year 1% Thereafter 0%, up to a maximum of RM50 per withdrawal Surrender Fee Stamp duty RM50 maximum RM10 one-off each Takaful Certificate Takaful Ikhlas Berhad (Takaful IKHLAS) is a wholly-owned subsidiary of MNRB Holdings Berhad and is registered under the Islamic Financial Services Act 2013 and regulated by Bank Negara Malaysia. Our business operations and management are in accordance with Shariah principles. We stress on ensuring equity and fairness in all our dealings as we believe in providing ease of doing business to our most important partner our Customers. In line with international and local developments in the practice of Islamic financial protection services, Takaful IKHLAS has adopted the Wakalah contract as our system and have modelled our operations accordingly. Wakalah is a form of representative relationship between Takaful IKHLAS and a Person Covered. Takaful IKHLAS employs the following contract to govern our business: Exclusions 1. Should the Person Covered, whether sane or insane, commit suicide within one (1) year from the effective date or die as a result of Acquired Immune Deficiency Syndrome (AIDS) or other sexually transmitted diseases, no benefit shall be payable under this Takaful Certificate. The Company shall refund the balance from the unit funds and net distributable surplus from the Risk Fund, if any, to the Person Covered s next of kin. 2. Benefit shall not be payable for TPD occurred directly or indirectly from any of the following causes: a. War, invasion, act of foreign enemy, hostilities or war-like operations (whether war be declared or not) or civil war; b. Mutiny, riot, military or popular rising, insurrection, rebellion, revolution, martial law or state of siege, any of the events or causes which determine the proclamation or maintenance of martial law or state of siege; c. Any act of terrorism. For this purpose, an act of terrorism means an act, including but not limited to the use of force or violence and/or threat, of any person or group(s) of persons, whether acting alone or on behalf in connection with any organization(s) or government(s), committed for political, religious, ideological or similar purposes including the intention to influence any government or organization and/or to put the public or any section of public in fear; d. Cause by or consequent upon suicide or attempted suicide or willful self-injury or indulgence in alcohol or narcotics or drugs or insanity or arising from venereal disease; e. Disability sustained by the Person Covered whilst entering, operating or servicing, ascending or descending from or any other activities relating to and including sky diving, parachuting, bungee jumping, hang-gliding or ballooning or any other aerial device, contraption, conveyance except while the Person Covered is in an aircraft operated by a commercial passenger airline on a regular scheduled passenger trip over its established passenger route; f. Disability arising prior to inception of coverage; g. Any breach of the law by the Person Covered or any assault provoked by him; h. Person Covered being under the influence of alcohol or drugs other than in accordance with the direction of a registered medical practitioner; i. Involvement in any underwater activity necessitating the use of artificial breathing apparatus; j. Injury caused by nuclear fission, nuclear fusion, nuclear weapon materials or radioactive contamination; k. Acquired Immune Deficiency Syndrome (AIDS) and any AIDS related conditions. Note: This list is non-exhaustive. Please refer to the Takaful Certificate for the full list of exclusions. a. Tabarru shall mean donation for the purpose of solidarity and cooperation among the Takaful Participants and to be used to help the Takaful Participant in times of misfortune. In the context of Takaful IKHLAS, Tabarru will be allocated into the Risk Fund. b. Wakalah shall mean agency. In this context, it refers to a contract between the Company and the Takaful Participant where the Takaful Participant authorises the Company to manage the fund on his/her behalf, which allows the Company to charge a Wakalah fee. 4 3076-e_brochure-ENG-v6-r24.indd 5
Important Notes a. The brochure is for general information only. It is not a contract of Takaful. The conditions disclosed are neither comprehensive nor exhaustive. You need to refer to the Product Disclosure Sheet (PDS) and the Benefit Illustration for further details, both of which can be obtained from your servicing Takaful agent. You should also consider the fees and charges involved. b. Takaful IKHLAS reserves the right to revise the rates, fees and charges, benefits, terms and conditions. The Takaful Participant will be informed in writing of the revision. c. You should satisfy yourself that this plan will serve your needs and that Takaful Contribution payable under the plan is an amount you can afford. Participating in an Investment-Linked plan is a long-term commitment and it is not advisable to hold the Takaful Certificate for a short period in view of the high initial cost. You may choose to cancel your Takaful Certificate by returning the Takaful Certificate to Takaful IKHLAS within fifteen (15) days after you have received the Takaful Certificate. Takaful IKHLAS shall cancel it immediately upon receipt and the refund amounts shall follow the terms and conditions of the Takaful Certificate. d. If at the expiration of the Period of Grace and the payment of any Takaful Contribution is in default, then the Company reserves the right to advance an equivalent amount from the respective account to pay for the Tabarru and the Takaful Certificate shall be continued in force under PIA until the amount in the unit funds is less than the Takaful Contribution needed to pay for the Tabarru. During this period the Takaful Certificate shall remain in force and if any Takaful Contribution remains unpaid after the unit funds amount become insufficient to be advanced any further, the Takaful Certificate shall lapse and have no further value. e. In the event of lapse, reinstatement allowed is subject to Takaful IKHLAS terms and conditions. f. The Company will charge a Surplus Administration Charge (SAC) of 50% of the gross distributable surplus declared at the end of each Financial Year. The net distributable surplus (after deducting SAC) from the Risk Fund will be allocated in full (100%) to the Takaful Participant. g. If your participation involves a Takaful Contribution of sizable amount of RM5,000 and above, you should consider participating in a single Takaful Contribution Investment- Linked plan rather than a regular Takaful Contribution plan as it offers better allocation rates for investments. h. Total amount to be exempted for income tax relief for Takaful and EPF contribution is limited to RM6,000. However, this is still subject to approval from the Inland Revenue Board of Malaysia. i. Our charges exclude tax that would be imposed in the future (including Goods and Services Tax (GST)). Upon implementation of the GST, we will be entitled to recover from you any GST that we are required by law to collect. j. For more information, you may refer to the insuranceinfo booklet on Investment-Linked Takaful, available at all our branches or you can obtain a copy from the Takaful Agent or visit www.insuranceinfo.com.my This is a Takaful product that is tied to the performance of the underlying assets, and is not a pure investment product such as unit trusts. For more information, please contact us at: TAKAFUL IKHLAS BERHAD (593075 U) (A wholly-owned subsidary of MNRB Holdings Berhad) CRM Department, IKHLAS Point Tower 11A, Avenue 5, Bangsar South No. 8 Jalan Kerinchi, 59200 Kuala Lumpur Tel: 03-27239999 Fax:03-27239998 Website: www.takaful-ikhlas.com.my E-mail: ikhlascare@takaful-ikhlas.com.my 5 3076-e_brochure-ENG-v6-r24.indd 6