As a business owner, ensuring the financial stability of your enterprise is crucial. The HLM Takaful Business Essential and HLM Takaful Business Essential Cover plans provide you with peace of mind by offering substantial protection for your business present and future financial needs.
These level coverage plans require only a 2-year contribution payment, yet they provide coverage for up to 30 years. Designed to safeguard your business against the financial impact of the death or disability of key personnel, ensure your business can withstand unexpected challenges and continue to thrive.
Key Features
- Protection Against An Unfortunate Event
In the event of Death or Total and Permanent Disability (TPD)¹, you or your business is entitled to the Sum Covered or the Account Value in the Participant’s Account (PA), whichever is higher
- Flexible Coverage Options With Short-Term Commitment
Pay contributions for only 2 years and enjoy the flexibility to choose a coverage term from minimum 10 years and up to maximum of 30 years, subject to a maximum expiry age of 80 years (age next birthday).
- Maturity Benefit
In the event of no Death or TPD claim is made prior to the certificate maturity, you or your business is entitled to the Account Value in your Participant’s Account (PA).
1 TPD Benefit covers up to age 65 years old, age next birthday.
2 Takaful Plans Designed For Your Needs
HLM Takaful Business Essential Cover
Coverage
- Minimum: RM100,000
- Maximum: RM500,000
Hassle Free Enrolment
- No medical examinations or health questions required. (In the event of Death or TPD due to non-accidental causes within the first certificate year, only the Account Value will be payable).
HLM Takaful Business Essential
Coverage
- Minimum: RM 500,001
- Maximum: Subject to underwriting
Who Can Apply?
- HLB and HLISB business and corporate financing customers.
- Individuals aged between 17 and 65 years old (age next birthday).
Types Of Takaful Funds
Participant’s Account (PA)
The contribution paid after deducting the Wakalah Fee will be credited into the PA. The PA will be managed and invested by Takaful Operator. The PA value will be based on actual performance and the investment returns are not guaranteed. The arising profit from the investment of the PA will be shared in a ratio of 90:10 between the participant and Takaful Operator (based on Mudarabah2 principle). Participant’s share will be credited into the PA. Any investment risk arising from the PA will be borne solely by the participant and the PA value may be less than the total contributions paid.
Participants’ Risk Fund (PRF)
On a monthly basis, a pre-determined Tabarru’ will be deducted from the PA into the PRF (based on Iltizam Bi Al Tabarru’3 principle) to provide for the Takaful coverage under this plan. Takaful benefits payable from the PRF are guaranteed.
Any arising surplus from the PRF will be distributed in a ratio of 50:50 between the eligible participants and Takaful Operator (based on Ju’alah4 principle). Participant’s share will be credited into the PA.
2 Mudarabah means a contract between you and us whereby you provide the capital to be managed by us for investment purpose. Any investment profit from the PA is to be shared between you and us in the ratio of 90:10. In the event of investment loss, the loss will be borne by you provided that such losses are not due to our misconduct (Ta’addi), negligence (Taqsir) or breach of specified terms (Mukhalafah Al-Shurut).
3 Iltizam Bi Al Tabarru’ means the commitment to make Tabarru’.
4 Ju’alah means an agreement in which you agree to reward us for our achievement or good performance in managing the PRF that leads to surplus of the fund.
Wakalah Fee
Wakalah Fee will depend on the financing amount to be covered, entry age, coverage term, contribution term and certificate year. Please refer to the Product Disclosure Sheet and Benefit
Illustration for further details.
Tabarru’5
Tabarru’ is a portion from the contribution payable that will be dripped from the PA and allocated into the PRF. The Tabarru’ will be used for mutual aid and assistance among the fellow participants. The amount of Tabarru’ depends on the coverage, Person Covered’s attained age, gender, occupational class and health condition. The Tabarru’ rates are non-level and are not guaranteed.
Monthly Service Fee5
RM2.50 monthly will be deducted from PA to handle the cost related to the Certificate.
Surrender Charge5
Surrender fee of RM50 will be deducted upon surrender of the Certificate.
5 We reserve the right to revise the Tabarru’, fees and charges by giving the Participant 90 days written notice prior to the next certificate anniversary.
What is ‘Takaful’?
The term ‘Takaful’ refers to a scheme based on brotherhood, solidarity and mutual assistance which provides for mutual financial aid and assistance to the participants in case of need whereby the participants mutually agree to contribute for that purpose. Each participant agrees to contribute on the basis of Tabarru’ (donation) which is pooled together to provide benefits in the event of misfortune suffered by any of its participants.
How much do I need to pay and what is the contribution payment mode and method?
The amount of contribution that you have to pay depends on your coverage amount, entry age, coverage term, occupational class and health condition. Please consult our bank staff for more information on the contribution payment mode and method.
Are there riders attached to HLM Takaful Business Essential and HLM Takaful Business Essential Cover?
There are no riders attachable to HLM Takaful Business Essential and HLM Takaful Business Essential Cover.
What are the exclusions for HLM Takaful Business Essential and HLM Takaful Business Essential Cover?
- No Death Benefit except the Account Value (if any) shall be payable if death results directly or indirectly from suicide within twelve (12) months from the commencement date or date of reinstatement of the certificate, whichever is later.
- The TPD Benefit is not payable if the TPD results directly or indirectly by self-inflicted injury while sane or insane or any condition or disability that existed prior to or at the commencement date or any reinstatement date of the certificate, whichever is later.
Note: This list is non-exhaustive. Please refer to the Takaful certificate for the full list of exclusions.
What happens if I terminate my certificate early?
You may surrender your Takaful certificate by returning the Takaful certificate to us with a written notice signed by you. The balance in your PA (if any) will be payable to you, less any surrender charge. You will lose the benefits under your Takaful certificate and the amount payable to you may be less than the total contributions that you have paid.
Are the contributions paid for HLM Takaful Business Essential and HLM Takaful Business Essential Cover eligible for income tax relief?
Yes. You may qualify for a personal tax relief for the contributions paid under “Life Insurance/ Takaful” up to RM3,000, subject to the final decision of the Inland Revenue Board of Malaysia.
Important Notes
- This brochure provides a summary of the main features of the Takaful plan and is not to be construed as a Takaful certificate. You should read the Product Disclosure Sheet and Benefit Illustration for more information and the Takaful certificate for the complete terms and conditions of this Takaful plan.
- You should satisfy yourself that this Takaful plan will best serve your needs and that the contribution payable under the Takaful plan is an amount you can afford.
- You should provide us with sufficient and accurate information so that appropriate advice and suitability of Takaful plan to meet your needs and circumstances can be given to you.
- You may cancel your Takaful certificate by returning the Takaful certificate within a free-look period of 15 days after it has been delivered to you. The contribution that you have paid will be refunded to you, less any medical expenses which may have been incurred.
- The investment performance of your PA is not guaranteed. It is possible that the balance in your PA is insufficient to pay for the Tabarru’ and other relevant charges due to poor investment returns. In such case, your certificate shall lapse and has no further value.
- In the event of non-payment of contribution, your Takaful certificate will remain in force as long as the balance in your PA is sufficient to cover the Tabarru’ and other relevant charges. If your PA becomes insufficient to cover all charges and no payment is made by you after a grace period of 30 days, your Takaful certificate shall lapse.
- If you terminate your certificate in the early years, you may get back less than the amount you have contributed.
- The Takaful certificate will not provide any payments from the PRF upon early termination or maturity of the certificate.
- Should you require additional information about Family Takaful, please refer to the Insuranceinfo booklet on “Family Takaful” at any of our branches, or visit www.hlmtakaful.com.my.
- Hong Leong MSIG Takaful Berhad is a Takaful Operator licensed under the Islamic Financial Services Act 2013 and regulated by Bank Negara Malaysia.
For further information, kindly contact our friendly
Hong Leong Islamic Bank/Hong Leong Bank staff today.
Distributed by:
Hong Leong Bank Berhad 193401000023 (97141-X)
Hong Leong Islamic Bank Berhad 200501009144 (686191-W)
Menara Hong Leong Bank
No. 6, Jalan Damanlela,
Bukit Damansara,
50490 Kuala Lumpur.
Tel: 603-7626 8899
Email: hlonline@hlb.hongleong.com.my
Underwritten by:
Hong Leong MSIG Takaful Berhad 200601018337 (738090-M)
Hong Leong MSIG Takaful Berhad is a member of Perbadanan Insurans Deposit Malaysia (PIDM).
Head Office
Level 5, Tower B, PJ City Development,
No. 15A, Jalan 219, Section 51A,
46100 Petaling Jaya,
Selangor, Malaysia.
Tel: 03-7650 1800
For more information, please visit any Hong Leong Islamic Bank/Hong Leong Bank branches or call 1-800-38-8888.
