What are the benefits under the plan?
In case the participant dies in an unforeseen event, the future contributions for the child education plan would be paid by Ayady and sum covered and profit from investments would be paid to the beneficiary when the certificate matures.
In case of Total Permanent Disability due to accident during the term of certificate, Takaful Fund will pay the amount as mentioned in the certificate to the financial institution towards repayment of the debt.
How does the plan work?
Certificate can be taken by the debtor (participant).
The contribution can be paid in one lump sum at commencement of the certificate or at more frequent intervals.
The amount of the certificate decreases every year and is nil on maturity.
The amount for any particular year will be equal to the debt outstanding.
Participant assigns the certificate as collateral security in favour of the financial institution and repays the debt by equated monthly installments.
In the event of untimely death of the participant, provided certificate is in full force, amount as mentioned in the certificate is paid to the financial institution towards repayment of the debt.
Illustrative Example
Mr. Mohamed aged 30 takes a borrowing of MVR 300,000 from a bank by mortgaging his house. He takes a Mortgage Takaful for same amount as collateral security for debt. He repays the debt by equated monthly installments to the bank.
In the event of his unfortunate death at age 35 the outstanding debt as mentioned in the certificate document is paid to the bank and debt is fully repaid.
The bank will release the mortgage property and there is no debt for his family or successors.
What is required to take the policy?
Note: Contribution can be paid by Cash, BML’s BillPay or Bank Transfer.
