Income protection plan takaful Essay Example

disability.

Under this plan, after the accident happens, you or your dependents will be given specified monthly amount of money until the specified time. In case of death, the beneficiary will be the one who receive the money. The beneficiary is chosen by the participants before entering the contract. Mainly, the beneficiary is the family of the participant. When a participant dies, he would not need to be worried much about the financial condition of his family.

The income protection plan will cover the cost of living of his family. This will give protection to their loved ones.

Particularly, this plan is best offered to those implies whom the wife does not work. The monthly proportion can be used to cover expenses and start new business in order to remain survive when the husband dies.

Secondly, the monthly income will be allocated when the participant suffers from total permanent disability (TAP). Total Permanent Disability here means loss of the physical or mental ability through an illness or injury to the extent that the insured person is unable to do the material and substantial duties of their own occupation ever again.

Typically, T PDP can be classified into broad range of meaning. Some of them are: 1. Total and irrecoverable loss of the sight of both eyes, 2.

Irrecoverable loss by severance and irrecoverable total loss of use of two limbs at or above wrist or ankle, or any other conditions that result the participants unable to work and earn money. The monthly income can be used to cover expenses of livings or to cover any other expenses that should be paid. Lastly, the money Will be given to

the participant/ beneficiary when the participant suffers from critical illness that makes him unable to work.

The money can be used to cover the hospital expenses needed to the importance of the health improvements. Sometimes when the participants suffer from it, they need more money to pay all the hospital expenses and living expenses.

By this plan, the participants would not need to worry about those expenses. PARTICIPANT Who is eligible to join this plan? Basically, all the terms and conditions about the participants that can enter the plan are basically just the same like general Tactful. There is no significant difference about who can enter to this plan.

Basically, they requirements are:

18 - 60 years old. This age range depends on each of Tactful operators. Some Tactful company has different arms about age range.

• Male or Female.
• Employed. This is necessary to ensure the participants are able to pay the monthly contribution.
• Participants can choose their beneficiary. The beneficiary will receive all the money in case the participant dies.

The Operation of Tactful Income Protection

Each operators have different terms and condition when offering their product.

Basically, you can select the level of monthly income you need, provided it does not exceed your actual monthly income.

Under any product, you can choose a monthly income which best accommodates your family deeds and Start your protection today. 1 . Choose the amount that you want to contribute monthly. This is based on the percentage of your monthly income. The amount should not exceed your monthly income. However, the greater your contribution, the greater the amount you or your beneficiary will get.

Choose the tenure of the contract. The longer the

better it is to secure and give protection to your loved ones.

After this part, the Tactful operator will refer to the scheduled plan, so that you can see the structured plan of the Monthly Income Benefit as well as his payment.

Reversely, you can choose he monthly income you wish you/ your beneficiary will get when unwanted tragedy happens. Afterwards, the Tactful Operator will determine how much of money that you will need to pay as a monthly contribution. Tactful operators compete to give the most attractive feature in their product to attract customers. Most of them are available at a very reasonable monthly contribution.

This plan is the best protection you can have to ensure that your dependents will be taken care of financially in case of loss of life or total permanent disability of the earning member due to accidents.

Income Protection Plan Offered by Tactful Company in Malaysia Generally in Malaysia there are four Tactful companies that offered income protection plan:

Bbs Prudential Ethic Tactful Skills Great Eastern

(conventional) Income protection plan is an extended plan or additional plan to the main product (family tactful). If we could look at the plan offered by each Tactful is quiet similar in mechanism.

However, to be specifically recognized the characteristics of each plan offered under different operators. Prunes Prunes protect the participant and their family for unexpected loss of life, or disability. This provides financial continuance for the loved ones to carry on even if the participant or insured is dead or if the income earning ability has stopped.

Those who can take up this plan as early as 1 9 years old and as late as 65

years old. Participant can choose the term of coverage subject to a minimum of 5 years and expiry age up to 80 years Through this plan under Prunes the minimum monthly contribution required is as low ARMS.

However, your actual contribution amount will depend on the following: age amount and term of coverage health status occupation (if applicable) gender payment method and frequency The basis of Prunes Protect is the Highball's model where they place participants' contribution into participants account after deducting wake charge. This is a fee for the services we provide. Type of charges Detail Of charges upfront wake charges This charge is used to pay commission and distribution related expenses as well as for managing and investing the Tabular' Fund.

The charge as a percentage of your contribution is shown below.

Certificate year 2 3-4 5-6 7 and above Upfront wake charge 0% Certificate charges There will be a charge of ARMS per year. This charge is to cover the administration cost of your certificate. Tabular An amount each month is deduct based on your age, gender, health status, occupation (if applicable) and amount of coverage Disaffiliate through Tactful insane plus helps participants to take care of their loved ones when unexpected events happen.

It is like a long-term protection and security.

Unlike other tactful operators, Ethic had already fixed their choices of monthly contribution either ARMS or OROMO. Participants can choose whether to pay by monthly, quarterly, semi-annual or annual mode. The tenure of contract is between 10 years to 30 years which suit best. If Death or Total Permanent Disability occurs on the Person Covered, a regular monthly income will be payable

for a fixed ten (10) years period which the total amount is equivalent to the amount of Sum Covered.

Accumulated Distributed Surplus, if any is payable upon payment of Sum Covered, at the first month together with the 1 SST regular income payment-Despite the payable of sum covered, an additional ROOM is payable upon death for funeral expenses.

Upon the survival of person covered till the maturity date, Tactful insane plus also have maturity benefit where participants will receive axed percentage of the sum amount covered in a form of hibachi. Sum covered = 120 x monthly income Tactful Insane plus provide their customers with monthly income table to refer to which the amount that they will cover in case of unexpected events happen to the covered person. The amount varies on age, tenure of the contract and the amount of monthly contribution as the table shown below: Tactful Malaysia SKILLS Family Income Secure Tactful Rider is attachable to a regular Tactful Contribution individual family plan. Tactful Participant has the option to participate in ten (10) plans available under this rider, with different levels of unifies and Tactful Contributions.

Specifically, This rider provides monthly income benefit to the Tactful Participant or the Tactful Participant's next of kin for the remaining duration under the Tactful Certificate in the event of death, Total and Permanent Disability (TAP) and/ or being diagnosed as suffering from any critical illnesses (as specified in the Tactful Certificate) prior to the Tactful Certificate's maturity. Among conditions of disability benefit payment that have been mention in the product disclosure sheet are defined below:.

TAP is based on "Own or suited Occupation" definition. The TAP claim

is confirmed.

The Tactful contribution are not overdue iv. The disability benefit is payable after satisfying a qualifying period that such disability must last for continuous period of not less than six (6) months in duration. The total Tactful Contribution depends on the underwriting requirements, age, gender, term and Sum Covered apply The renewal Tactful Contribution is not guaranteed and Tactful SKILLS reserves the right to revise the Tactful Contribution reduplicated specifically to each Tactful Participant at the time of Tactful Certificate anniversary based on the merging claims experience of the portfolio.

Tactful SKILLS shall give the Tactful Participant a three (3) months written notice in the event of revision of Tactful Contribution or product withdrawal. The Tactful Contribution could be revised due to deterioration in claims experience, changes in the product benefits as well as a change in the risk profile of the Tactful Participant. These conditions are not exhaustive and the Tactful Contribution rates may be reviewed under other justified circumstances. The Assyria concept that applicable in the Tactful plan are Tabular and Wake. In the context of Tactful SKILLS, Tabular' will be allocated into the Risk Fund.

Wake refers to a contract between the Company and the Tactful Participants where the Tactful Participant authorizes the Company to manage the fund on his/her behalf that allows the company to charge a Wake fee.

Conclusion

Every Tactful operator basically has the same purpose towards this plan. No one know when bad things would happen nor either no one can predict the future. Thus, Income protection plan work best to secure family financial and ensure that our family can still manage their life when loss occurs. One's

need o consider their ability in choosing the best plan.