When it comes to getting a Family Takaful plan, there are myths floating around that could be causing you to form an inaccurate picture about Takaful protection. It’s important to correct these misconceptions, as they could be stopping you from being adequately protected with the much-needed coverage.
We’ll start by looking at three common myths that you may have heard about Takaful plans.
Myth #1: Takaful plans are only for later stages in life
Myth: Many young people, especially among the millennial generation, think that Takaful coverage is something that should only be considered later in life. The common belief is that they only need a Takaful plan when they reach their late thirties, or perhaps when they have children of their own. Moreover, many millennials believe that Takaful plans are too expensive, with contributions and coverage that are not within their income.
Busted: Just like with saving, there are numerous benefits to starting a Takaful plan even when you are in your twenties. For starters, Takaful contributions are priced lower when you start a plan at a younger age. It is also inaccurate to assume that Takaful plans are only for those with children, as you are sure to have other family members like elderly parents to think about. Moreover, Takaful coverage ensures that you are protected in the case of unfortunate circumstances like suffering from total and permanent disability or critical illness.
Myth #2: Takaful coverage terms are not flexible
Myth: When asked about why they do not want to get a Family Takaful plan, some people cite long and rigid coverage terms as a reason for their hesitation. They are unwilling to commit to a long-standing financial obligation, incorrectly assuming that all Takaful plans come with set long-term contribution payments and no room for flexibility.
Busted: Different Family Takaful plans offer different contribution payment options. While it is true that there are long-term coverage plans out there, some plans also give you the option to choose shorter payment contribution terms. So, instead of paying up until an advanced age, you can choose to be covered for a longer period of time and only pay the contributions for 10 or 20 years.
Myth #3: Takaful plans do not match my wants and needs
Myth: This misconception stems from a lack of understanding about the nature of Takaful plans. If you are not familiar with the wide range of benefits a Takaful plan can offer you, you may think that Takaful plans are not that advantageous, or that they do not really address your specific wants and needs. However, Takaful plans are not solely about death coverage only.
Busted: Takaful plans have so much more to offer you than just a death benefit. In addition to being a protection plan for the unforeseen events, you can also qualify for a maturity benefit and various coverage boosters through your Takaful plan. Some plans also offer bereavement payments or benefits that are linked to religious obligations. Moreover, you can expand upon your Takaful coverage by adding on riders to your coverage.
Let’s see how the benefits of Great Eastern Takaful’s newly launched Family Takaful plans, i-Great EVO and i-Great NEO, correct the misconceptions about Takaful protection above. We also asked Mr. Shahrul Azlan Shahriman, CEO of Great Eastern Takaful, to share some valuable insight on the conception of these two Takaful plans.
i-Great EVO: A Takaful solution for young millennials
“We launched i-Great EVO with young people looking for their first protection plan in mind,” explained Mr. Shahrul. “The name EVO comes from the word ‘evolve’. First-time Takaful buyers can start out with smaller coverage and upgrade their protection as their needs evolve over the years.”
Monthly contributions start from as low as RM50 a month, which busts the myth that Takaful plans are not affordable. You can also customise your Takaful plan by adding on optional riders, which include medical and hospitalisation, critical illness, accidents, and waiver of contribution. Furthermore, the medical rider allows you to have increasing room and board and overall annual limit every five years, ensuring that your coverage grows together as you do.
While you may start out with coverage for yourself as a single individual, you can also expand your coverage when you get married and have children. “Why start Takaful coverage from a young age? Once you are older, Takaful gets more expensive – and you may have difficulties qualifying for coverage,” said Mr. Shahrul. “Get covered now at an affordable price, and your coverage can increase as you need it and as you earn more income.”
i-Great NEO: The flexible protection plan to match your life goals
“Meanwhile, NEO represents an offering that is ‘new and improved’. i-Great NEO is a flexible protection and savings plan that supports your financial goals,” said Mr. Shahrul on the high-coverage plan. The i-Great NEO offers coverage starting from RM 300,000 with a benefit payout of up to 400% of the sum covered.
“It’s a multi-faceted product, which you can use to protect wealth, prepare for retirement, settle debts, and plan your legacy,” Mr. Shahrul continued. Moreover, you get maximum flexibility with the i-Great NEO as you can choose a contribution payment term of between 10, 20, or through the coverage term of 30 years, or until your 60th or 80th birthday. Not to mention, i-Great NEO comes with optional riders too.
i-Great NEO also has other advantages to offer, such as a loyalty benefit, where you receive an amount equivalent to a certain percentage of your annual basic contribution every 5 years. You also get a maturity booster benefit, where you receive an additional percentage between 3%-20% payable on top of your maturity benefit. i-Great NEO offers a compassionate benefit to your loved ones and for Muslim certificate holders, it has optional features including Badal Hajj, Waqf service, and Hibah for charities as well.
Holistic Takaful products to meet Malaysians’ needs
To sum up, Mr. Shahrul observed that Great Eastern Takaful’s purpose is mirrored in the approach of helping each other in times of need. “We believe that Malaysians’ level of awareness on the importance of getting covered is much higher than before. We are here to give them the right push so that they can see how our products can actually help them and their loved ones,” he said.
“We aim to provide sufficient coverage now and in future, by making it easier for our customers to review and enhance their plan through our online customer portal, i-Get in touch. In the spirit of offering services beyond Takaful solutions, we have introduced telemedicine services under medical rider of i-Great Evo which has become increasingly important during this pandemic. All our customers also currently enjoy free additional Covid-19 financial assistance until 31 Dec 2020 if they or their immediate family members are hospitalised or pass away due to Covid-19.”