Knowledge Centre

Takaful is a system based on the principles of brotherhood and mutual help, derived from the Arabic word “Takaful,” meaning “joint or mutual guarantee.” It operates as a community-pooling system, where participants contribute to a common fund to provide assistance to those in need. Takaful promotes solidarity, brotherhood, and the practice of mutual and cooperative concepts within the community.

Takaful insurance, or Islamic insurance, and conventional insurance both offer financial protection but differ in principles and operations. Takaful operates on mutual cooperation and shared risk among participants, investing in Shariah-compliant businesses. Surpluses are returned to participants, and insurance companies act as trustees. Conventional insurance, on the other hand, is a risk-transfer mechanism, with insurers owning the risk and profits. Investments are not restricted to ethical standards. The choice between them often hinges on individual or corporate values, with the demand for Takaful growing as demonstrated by the emergence of the first Takaful insurance company. In aligning with the principles of shared-risk and ethical investment, Takaful embodies the Islamic principles of mutual assistance and fairness, positioning itself as an appealing alternative. It provides not only financial protection but also peace of mind in knowing your contributions support sustainable and responsible practices, echoing the Islamic teachings of caring for the community and environment. This makes Takaful not just a financial choice, but a choice to foster a more balanced, equitable, and ethical financial ecosystem.

Aqd-e-Tabarru: Contracts in which a person is made the owner of something without any consideration.
Aqd-e-Muawaza: Contracts in which a person is made the owner of the corpus or the usufruct against some consideration.
Benefits: Takaful benefits paid upon the death of a participant or the maturity of their membership.
Contribution: The amount payable by a participant to an operator under a Takaful membership.
Gharar: Uncertainty, hazard, chance, or risk.
Kafala: To guarantee, to take care of one another’s needs.
Mamlook-e-Waqf: The assets of a Waqf (a legal person).
Mudaraba: A type of business contract in which one party brings capital, and the other brings efforts.
Mudarib: A working partner.
Muwakkil: The party who appoints a representative (wakeel).
Participant: Individuals or organizations who deposit funds (Tabarru) into the Waqf fund.
Participant’s Investment Fund (PIF): The investment pool of participants.
Participant’s Takaful Fund (PTF): Also known as the Waqf Fund, it provides financial support in case of pre-defined losses.
Participant’s Membership Documents (PMD): Documents related to a participant’s Takaful membership.
Qimaar: Also known as Maysir (Gambling); commutative agreements in which there is a definite loss for one party and a gain for the other.
Qard al-Hassan: Interest-free loan.
Riba: Riba refers to increase, addition, expansion, or growth.
Riba_Alfadal: The increase in homogeneous exchange transactions.
Riba_Alqardh: A loan with predefined interest.
ReTakaful: A Shariah-compliant ReTakaful company that provides cover to Takaful pools based on Mudaraba and Wakalah principles.
Surplus: The remaining profit of the Waqf pool after deducting expenses.
Sum covered: The amount given to the beneficiary upon the participant’s death.
Shariah Advisory Board (SAB): A council of Muftyan e Karam that provides guidance to Takaful companies based on Islamic laws.
Shariah Guidelines: Regulations approved by the Shariah Advisory Board.
Takaful Operator: An organization or company that acts as the operator or manager of a Takaful fund.
Tawakkul: Putting trust and dependence on Allah (SWT) after making one’s own efforts.
Wakalah fee: The operating fee of the Waqf pool.
Wakala-tul-Istismar: The fee for investment management of the Waqf pool.

Why 5th Pillar Takaful Haazir Hajj Savings Plan?

5th Pillar Takaful Haazir Hajj Savings Plan is the structured Takaful solution to fulfill your dream to perform Hajj obligation. This plan has both Takaful Protection and Saving components and facilitates you to achieve this goal and embark on this spiritual journey of Hajj through its associate companies as per your preference.

What is a Unit-Linked product?

Unit-Linked products mean Investment-Linked Takaful products offering Family Takaful coverage coupled with saving component where under the saving component is managed through operating unit-linked investment funds.

How will my investment be managed?

The deposited amount will be invested according to Shariah principles in different avenues within the country. The Shariah advisor of 5th Pillar Family Takaful will approve all the modes of investment.

Does the projected amount include all expenses of Hajj?

Yes, the projected amount based on inflation and forecasted foreign exchange rates has been estimated taking into account all expenses of Hajj including Tickets, Visa and Accommodations, Transportation and Food Catering except Qurbani. However, actual cost of Hajj may vary each year based on various factors like inflation, taxes and exchange rates etc. 5th Pillar Travel Pvt. Ltd. will announce the price of Hajj Package each year and in case of shortfall, if any, between the price of Hajj Package and the maturity proceeds of the membership, it will be borne by the participant.

What if I need funds before the completion of term?

We offer Full and Partial withdrawals before the completion of term. However, it is highly recommended that you continue with your plan so you may fulfill your dream of going for Hajj.

Will I be able to perform Hajj if my maturity value is less or more than the Hajj package?

In case of any difference/shortfall between Hajj package announced by 5th Pillar Travel and Maturity proceeds of the membership, it will be borne by the participant. However, If paid amount/accumulated cash value at maturity is higher than the cost of Hajj, it will be the ownership of the participant.

What if I am not able or interested to perform Hajj at maturity?

In that case, you can withdraw the maturity value of the membership in cash.

What if I want to perform Hajj before maturity?

You may be allowed to perform Hajj before maturity by utilizing our exclusive Hajj Facilitation Services provided you decide to pay shortfall amount, if any. You can also withdraw the cash value of your membership at any point during the membership.

What if I want to perform Hajj with any other Hajj operator?

Yes, you can. However, in case of opting 5th Pillar Travel Pvt. Ltd. As your Hajj arrangements facilitator, you will have facility to enjoy exclusive end-to-end Hajj Facilitation value chain services.

What if the participant passes away before the maturity of membership?

In event of death of participant before maturity, the nominee shall get the death benefit i.e. higher of face value or cash value.

What is 5th Pillar Travel Private Limited?

5th Pillar Travel Private Limited is an associated company of 5th Pillar Family Takaful Limited, which will facilitate the customers of 5th Pillar Family Takaful Limited in alliance with MoRA & IH approved HGOs for complete value chain of Hajj related services.

What if I have any other questions or concerns?

In case of any other queries, please feel free to contact us at info@5thpillartakaful.com or call us at 021-111-786-573