Execuse Not to Cover Yourself

Reasons for not cover yourself – NO to TAKAFUL!

Posted by admin

Oct 30

In almost every family, there is always having a principle breadwinner, whereby the source of income will sustains the lifestyle of those living within the circle.
Put yourself in the shoe of your family members and then ask “How much should I insure to cover all the essential of my family needs?”
So you have a reason for not cover yourself? Check them out and review your needs…
Hope that you will find a reason and meaningful purpose to get yourself insured if you are not yet insured.
Each reason provides a different perspective of the needs of Takaful. Certain reasons will required immediate action to protect your loved ones through Takaful – to even change your mind if you had earlier thought that you don’t need it, hate it, don’t trust it or in no hurry to get the Takaful.
Reason 1 – I have enough saving

1. What is the purpose of your saving?
2. For your retirement?
3. For whom do you wish to receive your money finally? Your family (when you’re died) or doctors (if you are sick – for your treatment)?
4. Think again! One serious illness could wipe out a lifetime of your saving.
5. Without medical or Takaful, you could be saving money to pay your final expenses and at the end nothing for your family! Medical bills, legal bills and debts, just to name few items, will eat into your wealth accumulation and reduce what you have saved.
6. Who will bear the costs after you have gone? (No offense intended) but the ‘real recipient of your savings could be your doctor, lawyer or maybe debtors!
7. Takaful money can defray such expenses and help you to preserve the value of your wealth. In the other hand, Takaful will protect the asset created by your savings! Save with other vehicles (such as investment in unit trust, FD or ASB), but also don’t forget to put enough money into your Takaful.

Reason 2 – Takaful is expensive?

1. In fact, the amount of Takaful (sum assured) only will cost you less than RM3.50 per day! RM50,000 takafaul plan cost you from RM100 monthly.
2. Death or critical illness would immediately reduce your wealth by RM50,000 or more. “But I may live till ripe old age!” you may counter. Well, there is no loss. It is like win-win situation, whereby if nothing happens to you, you can always withdraw the saving from your Total Surrender Value at anytime.
3. Basically, Takaful is like a flip of coin – ‘head (death) you win big; tail (maturity) you win small’. You win both ways! In this perspective, we may even can say that Takaful cost nothing at the end. There are no financial instruments that can protect you financially in a more efficient manner like this!

Reason 3 – I don’t need Takaful

1. Is it real or just your perception?
2. If you have no dependencies or have a reliable alternate source of income, then your statement got some valid reason – at least for now. By FACT – You can only buy Takaful when you DON’T NEED IT! When you need it, it is probably too late.
3. For most people, their income is coming from their job or business. This is why their families are financially secured. If this represents your situation, then you clearly need a Takaful – not just to protect you financially (in case total and permanent disability or critical illness) but also to protect your loved ones from having a financial problem (if you as the breadwinner died). If you have clear needs, why not open your mind to get more information about Takaful. The consultation is free.

Reason 4 – I will wait for a while

1. You are always at anytime can wait, but the Takaful should not be the one of them if you need protection now! Why?
2. When you wait, your family stands at risk…too much considering. No one live forever. As you are become older, the risk is also increased, so will the cost of your Takaful.
3. It is cheaper to buy early. That’s why, don’t wait! Get insured so that you live in peace of mind.

Reason 5 – I don’t trust Takaful agent

1. There are plenty of Takaful agents who can serve you in a professional manner. All you have to do is choose carefully.
2. Just focus on your NEEDS as this is the real issue for you! If you are concern with the quality of advice, check around for a good and a reliable agent.
3. The Takaful agents are only a middle man who stands between your problems and the solution to your problems.

Reason 6 – Takaful gives lower return

1. Basically, Takaful is a protection device. One’s must recognize, that it pays at the time when you needed money most – when person died or become disabled which something that no other investments can perform!
2. In case you don’t want to put all your money in Takaful, only just a small amount will do.
3. After you are insured, then you can put the rest of your money into any investment products.
4. Takafuls is just a financial foundation, for example like foundation of a building, it must be strong to support other financial initiatives.
5. It is a very important to put your money in the right place before considering to put your money in investment vehicle!

Reason 7 – I have no interest in Takaful

1. Always we noted that Takafuls have never been a popular topic for most people. In fact, it is widely considered as an ‘unsought’ product by marketers. So why should you be interested in Takaful?
2. It is because of your future matters! Your family’s financial matters!
3. How you feel on Takaful is no longer relevant. The relevant and important issue here is how your family member will survive financially in case they suddenly lose you. It is a matter of their interests and not your interest anymore.
4. Just assume that a Takaful is a symbolic of your love to them.

Reason 8 – I already insured

1. It is really a good start, at least you have a financial ‘helmet’ on your head! But take note that time is changing and many things also changed including your financial needs.
2. Have you checked the thickness of the financial helmet recently? If the helmet is too thin, the consequence can be just as having no helmet. You might need to review of your risk situation and determine the “thickness” that your financial helmet should be.
3. Check on a regular basis to ensure the amount of Takaful is sufficient to cover cash and income replacement should your family loses you unexpectedly. If your needs have grown, check your current coverage.
4. If the insured amount is still sufficient, fine; if not, you may need to top-up!

Reason 9 – I’m still young

1. This is the best time to buy!
2. The younger you are, the more ‘potential income’ you have, i.e. money you will earn over the years if you live. There is also no guarantee that younger means you will not stop breathing midway of your normal lifespan. Accident or illness recognizes no age of group.
3. Less probability you may think, but still there are young people of your age of group dying everyday. There is also a clear advantage to buy Takafuls when you are young. It cost less and you are likely to get preferred rate because of your health conditions.
4. Waiting can reverse the situation. The price goes up and you may not be able to get insured if you are diagnosed with a critical illness.

Reason 10 – I will ask my wife

1. It is good to consult with your wife for most of the issues, but for the Takaful she may be not the right person to consult. Many people missed this point and at the end it end up in a misery. Why?
2. Firstly, your wife is not trained in Takaful matters and thus she is not in a position to assess the family’s Takaful needs. And as long as you are the one providing money for family, why would your wife need to think of having Takaful money? Furthermore, how many wives would openly ask their husband to insure?
3. Look, Takaful is linked to death – your death, not something a wife would like to think and discuss on. The right person to ask is your ‘future widow’, whom unfortunately you can’t as you won’t be around by then.
4. Put yourself in a widow’s shoe. How many widows you know tell us that they do not need any extra money? So don’t ask your wife – you know enough how to decide. And it is your responsibility to provide; not her!

Reason 11 – I’m not married yet

1. The best time to start a Takaful is when you are not burdened by any family obligation. Below are some rationales to buy now. The contributions are cheaper when you are younger. You have more spare cash and fewer obligations.
2. Even if you remained unmarried, you may have dependents such as your aged parents. In addition, you will still need a replacement of income in case of disability or critical illness.
3. By buying now will ensure that you are well protected in the future. You don’t know when you need it but if you need it, you are well prepared and protected.
4. Starting early could mean more protection for the same contribution paid when you are older. The bonuses over the years would have swelled your protection with no additional costs.
5. Another advantage of early is the Takaful plan will build up cash values to meet your emergency situation. The Takaful plan total surrender value will act as a reserve fund in case you cannot settle the contributions due to temporary financial constraints. It can also provide immediate loans for other uses.

Reason 12 – I may not afford the contribution

1. If you have a clear financial needs and budget just get insured! Future contribution payments may be a concern, but that can be worked out through proper budgeting which would include a forecast on your future earnings. Isn’t this the same rationale we used in deciding to buy house or to get married?
2. If you can afford the contributions now, the smartest thing you could do is to start early and the build-up of the Takaful plan cash value will ensure your family is protected in later years even when the contributions are not paid because you are temporarily in a tight spot financially!

Reason 13 – I have many Takaful agents

1. Have any of these friends ensured your risks are covered? Friendship doesn’t protect; Takaful does!
2. Your family’s exposure to the financial risk of losing you still exists. Your exposure to incomes losses due to disability is still there. It is only by getting insured adequately that really matter.
3. The thinking question is “Am I insured or have I reviewed my risk situation professionally?” If not, the wisest thing to do immediately is to make an appointment with him to examine your situation and advise you on what to be done.

Takaful is an Islamic insurance concept which is grounded in Islamic muamalat (banking transactions), observing the rules and regulations of Islamic law. This concept has been practised in various forms for over 1400 years. It originates from Arabic word Kafalah, which means “guaranteeing each other” or “joint guarantee”. In principle, the Takaful system is based on mutual co-operation, responsibility, assurance, protection and assistance between groups of participants. It is a form of mutual insurance.


Call me  016 222 8504 khairul/ nusa_007@yahoo.com