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What are the benefits under the plan?
In case the Participant dies in an unforeseen event, provided the certificate is in force, amount as mentioned in the certificate is paid to the financial institution towards repayment of the debt.
In case of Total Permanent Disability due to an 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 the 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 favor of the financial institution and repays the debt by equated monthly installments.
In the event of the untimely death of the participant, the provided certificate is in full force, the 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 the same amount as collateral security for a 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 the debt is fully repaid.
The bank will release the mortgaged property and to his family hence, there is no debt for his family or successors.
What are the documents required?
Note: Contribution can be paid by Cash, BML’s BillPay or Bank Transfer.
