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FAQs on Investment-linked Takaful
    Is the return on an investment-linked fund guaranteed?
      No, the return on an investment-linked fund is not guaranteed. This is because the price of the units that you hold may rise or fall depending on the market value of the investment.
    What are bid and offer prices?
      The offer price is the price quoted by the takaful operators when selling the units of an investment-linked fund to you. The bid price is the price quoted when the takaful operator buys back the units from you. The difference between bid and offer prices is called the bid/offer spread, which is usually expressed as a percentage. The spread is usually about 5%.
    Would I know the charges I pay under my investment-linked takaful?
      An investment-linked takaful plan is usually more transparent than other plans in disclosing the charges that are levied. Theses charges are disclosed in the statement sent to all participants.

    Do I have to surrender my investment-linked takaful if I decide to change the investment fund?
      No, it is not advisable to surrender your existing investment-linked takaful if you decide to change the investment fund. This is because you may get less than what you have invested due to fees and charges. What you can do is to switch funds and most takaful operators allow one switch per year without any fee. However, for additional switches, a small fee may be imposed.
    Can I increase my investment?
      Yes, you are allowed to top up on your existing investment-linked takaful plan at any time. The 'top-ups' are normally used to enhance the investment portion of both single and regular-premium plans without any change in the takaful coverage.
    How long should I hold my investment-linked takaful?
      There is no fixed period of time for you to hold on to your investment-linked takaful plan. It is like a savings account in a bank or a unit trust in which you may decided on the duration of holding onto your plan. However, it is not advisable to hold the plan for a short period of time in view of the high initial costs.
    Is investment-linked takaful meant for Muslims only?
      No, investment-linked takaful is opened to any individual regardless of his/her religious beliefs. No additional terms and conditions are imposed upon non-Muslim participants.
    How do I pay my takaful contribution?
      You can choose to pay your takaful instalments on a monthly, quarterly, semi-annually or annual basis. Payment of your contributions can be made by bank standing instruction, credit card, cheque, salary deduction or at any branch of your takaful operator.
    What is permanent disability?
      Permanent disability is a disability, whether caused by bodily injury or disease, which totally prevents you from engaging in or performing any work.

    Would I be entitled for personal tax relief when I participate in investment-linked takaful?
      Yes, you would be eligible for personal tax relief when you participate in investment-linked takaful. The takaful operator will issue an annual contribution statement to support your income tax statement to the Inland Revenue Board.
Related Information

Investment-linked takaful
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