Q & ACategory: InsuranceChoosing Insurance: Conventional Vs. Takaful
Gordon asked 6 months ago

Hi KC Lau,
I have some questions with regards to choosing insurance plan. I know that quite recently this year, you have hosted 2 webinar on insurance. However I didn’t get to join live on Zoom as I was working.
I have followed both webinar through your Facebook, but I think there are something missing. Appreciate if you could shed some light on the following:

  1. Conventional versus takaful insurance.
  2. What should be the deciding factor to choose between conventional or takaful insurance, (putting religion aside). For Muslims, I believe it is better for them to go takaful as part of it involve ways the fund is handled etc. But how about for non muslim, as we too can choose takaful.
  3. Would you be able to find perhaps one or two pannel to talk about takaful products?
  4. Why is takaful plan for more or less the same coverage seems to be cheaper compared to conventional?

Hope you can provide some answers on these questions.
Thank you KC.

1 Answers
KCLau Staff answered 6 months ago

Hi Gordon,

  1. The main difference for non-muslim to get a Takaful plan is the cost structure. You can ask for the exact same benefits quotation, compared both ILP & Takaful. The last time I did many years ago, both plans are compatible. 
  2. Good suggestion! We will try to get some syariah financial planner to talk about takaful products too.
  3. I didn’t notice that takaful plan is cheaper. Can you send the quotations to me for analysis? The quotation have to come from the same company for apple to apple comparison, e.g. GE insurance vs GE family takaful.