Group Takaful Mortgage Plan may be participated by financial institutions such as banks, cooperative societies, corporate organizations or employers (financier) which provide financing facility, credit or loan to customers or employees for the purpose of purchasing assets such as house, shop, land, car, etc to protect their financial interest consignment upon an untimely death or permanent total disability of the customer.
Under the plan, if the customer dies during the payment period and the financing facility is not fully paid than its balance shall be paid from the proceeds payable under the plan.
The amount of sum covered shall be decreasing progressively in tandem to the balance of the outstanding facility. The plan may be extended to cover Personal Accident and Critical Illnesses as riders benefit.
Benefits of the plan are:
1. To the Customer
- a) Security - Security - outstanding balance of the financing facility will be repaid in lump sum upon the untimely death of the customer;
- b) Relief - the guarantor, if any, shall not be burden to assume liability of the facility in the event of death of the customer;
- c) Ownership - arising from full payment and redemption of the facility the fixed asset under the facility will be free to be inherited by rightful heirs of the customer.
- d) Profit sharing - the customer shall be entitled to share the profit/surplus arising from the actuarial valuation of the Takaful Fund at the expiry of the period of takaful.
2. To the Financier
- a) Guarantee of settlement - full repayment of the outstanding balance of the facility will be assured in the event of the untimely death of the customer.
- b) Cost-saving - in view of (a) above, the financier will not incur additional expenses such as legal fees, reminders, and litigation normally required to recover the unpaid outstanding balance of the facility.
- c) This in turn would enhance the image of the financier as being a caring institution.