Mortgage Reducing Term Takaful

How does HLTM Takaful-MRTT plan provide the coverage?

HLTM Takaful-MRTT is a single contribution plan. The plan provides, in the event of Death or TPD, a reducing Takaful benefit payable from the Risk Fund. The paid amount is expected to match the outstanding mortgage . HLTM Takaful-MRTT also has a special feature where Certificateholder or your nominee will be paid on any excess from the accumulated Participant's Fund.

Exclusions to the Takaful coverage

The Death or TPD benefit shall not be payable if the Death is due to or arising from suicide or attempted suicide and/or other causes prohibited by civil and criminal laws and/or by Shariah. Under such circumstances, only the value of the Participant's Fund at the time of Death will be payable.

No benefit shall be paid if the TPD is due to AIDS, strikes, riot, war, aerial activity other than as a fare paying passenger of a scheduled air flight or the influence of intoxicants.

How is Participant's contribution allocated?

An upfront wakalah fee will be deducted from the single contribution made by the Participant. The wakalah fee goes into the Operator's fund to cover operating costs. The balance of Participant's single contribution will go into a savings account (Participant's Fund) from which periodic donations (tabarru') will be made into the Risk Fund.

How will the contribution in the Participants' Fund and Risk Fund be invested?

Both funds will be invested in compliance with Shariah principles. The investment profits (in case of Participant's Fund, after deduction of the Operator's share) shall be kept in the respective funds.

How are surpluses, if any, from the Risk Fund treated?

Any surplus exceeding reserves deemed necessary by the Operator may be donated to charities selected by the Operator as advised by the Operator's Shariah Advisory Committee.

What happens if the Risk Fund is insufficient to pay for the benefits?