KUALA LUMPUR
MALAYSIA, despite having a relatively small population, has a high level of underinsurance among its citizens, with a penetration rate of just over 55 per cent.
The government is pushing for a 75 per cent penetration rate in affordable insurance by next year, with takaful contributing 25 per cent.
While there are many affordable policies out there, potential customers may find a significant number of insurance or takaful plans confusing, making them unsure whether they are getting the best deal.
This could be one of the reasons why many out there have no medical or family takaful plans.
FWD Takaful Bhd, the newest entrant in Malaysia’s takaful industry, intends to make a difference by coming up with plans that are straightforward, clear, uncomplicated and easy to understand.
The company prides itself in taking a customer-led approach and aims to provide easy access to innovative family takaful products to all Malaysians.
Have we ever wondered what would happen if an unfortunate event occurs to our family members and we do not have sufficient cash or credit to cover the medical costs?
We might face financial strains from medical expenses and experience loss of earnings as we take time off work. Thus, getting family members protected is a necessity.
It is common for each family member to take a different takaful plan, but this can be a bit burdensome for most people.
It may be one of the reasons why some families neglect taking takaful coverage for themselves. They don’t want to be caught up in having to manage all the different plans.
FWD Takaful has a critical illness plan designed especially for Malaysians and their family members combined.
FWD Family First, a regular contribution takaful plan, is itself innovative. It provides the flexibility needed when a family expands. They just have to contribute a little more to their existing takaful plan to include their newborns.
This is Malaysia’s first-ever takaful plan for an entire family, giving customers peace of mind as they don’t have to deal with individual plans for each family member.
Like any other critical illness protection plan, FWD Family First covers a number of major and minor critical illnesses. But its plus point is in the extra benefits it provides in the event that either parent dies.
The benefits are paid to the family and future contributions will be waived.
Typically, an ordinary medical protection will pay for one’s immediate medical costs, but there may be limitations to the payout amount, no guarantees for renewal of the plan for the subsequent year, and even if there is, one still needs to pay a higher contribution.
As a result, there may be an unexpected spending, especially for necessary long-term medical care.
The FWD Family First protection offers additional funds in a lump sum so that unexpected costs can be taken care of according to one’s individual situation. worse, loss of family home because they can no longer cover the mortgage.
This could threaten the economic stability of the whole family.
Other than providing a one-time payment on one’s passing or getting disabled, FWD Future First offers a range of support services. This includes sessions with a qualified grief counselor and legal advice from an independent expert.
For Muslim customers, FWD Takaful will provide “Badal Haj” (pilgrimage by proxy) support whereby the takaful operator will arrange and pay for the haj via its panel of service providers.
This is eligible for persons covered who have not performed haj during their lifetime or before their death.
For terminal illness, disability or death, the full sum covered will be paid to selected nominees and can be used for hospice care or longterm nursery care.
The spouse of the person covered can also request for a new takaful certificate without any underwriting, with a coverage of RM100,000 for a two-year term.
FWD Future First offers large coverage with low contributions and ensures that customers protect their assets within their budget.
This plan is suitable for those who intend to have an asset that can assure repayment of specific debt or fulfillment of a contract in the event of their death.
FWD Takaful manages customers’ contribution and its takaful operations based on the syariah contract of wakalah and is guided by its syariah committee
The contributions paid for takaful coverage are subject to a wakalah fee. The contributions, minus the wakalah fee, are channelled into a Participants’ Risk Fund (PRF) as tabarru’.
Funds in PRF are used to pay the benefits to claimants.
If the value of PRF is insufficient to pay the claims, FWD Takaful will give “qard”, which is an interestfree loan to PRF.
If the PRF’s performance is good, FWD Takaful will reward 50 per cent of the surplus as “ju’alah” and the remaining 50 per cent will be distributed to participants.
For family-oriented customers seeking financial stability in the later stages of their life, there is no better time to plan for the future than now.
With spiraling cost of schooling and increasing standard of living, funding for children’s education or lifestyle can be daunting in the future.
FWD Invest First is one of the best approaches to financial planning and it can help customers meet their long-term goals.
Either for the unexpected, retirement or children’s future, FWD Invest First offers a holistic approach to planning the future.
FWD Invest First – Education Plan is a customised solution to save for a child’s education. It is an investment-linked takaful plan that helps magnify savings while protecting one’s finances.
With the education plan, customers will be able to withdraw lump-sum or regularly as per their needs. They can also convert it into a Wealth or Legacy plan with no hassle.
FWD Invest First – Wealth Plan enables customers to grow their wealth and at the same time, secure it should anything unfortunate happen later.
It is a protection that is adjustable according to different stages of one’s life. It offers wide fund options for investment.
FWD Invest First – Legacy Plan, meanwhile, is an investment-linked plan that helps customers save and invest in order to afford the lifestyle that they desire. It is a way for customers to maximise what they can pass on to their family and cause.
Similar to FWD Invest First – Wealth Plan, customers can choose from wide fund options to invest in.
As their needs evolve, customers are able to increase takaful coverage later.
For more information about FWD Takaful, visit or call