How they differ
| Takaful | Conventional insurance | |
|---|---|---|
| Basis | Mutual help (ta’awun) under Shariah principles | Contract transferring risk to the insurer |
| What you pay | Contribution into a participants’ fund | Premium to the insurer |
| Surplus | May be shared with participants, depending on the plan | Belongs to the insurer (participating policies may pay bonuses) |
| Investments | Shariah-compliant only | No religious restriction |
| Law | Islamic Financial Services Act 2013 | Financial Services Act 2013 |
| Agents registered with | MTA (Malaysian Takaful Association) | LIAM (life) or PIAM (general) |
Can non-Muslims buy takaful?
Yes. Takaful is open to everyone. Many non-Muslims buy takaful medical, family or motor plans, and some Islamic home financing pairs with takaful mortgage cover such as MRTT. Choose based on cover, price and terms, not religion.
What matters more than the label
- Annual and lifetime limits, room and board, and deductibles for medical plans
- Sum covered, term and riders for family or life plans
- Exclusions, waiting periods and how contributions or premiums may change
- Claims service and whether your agent will help when you need it
Lulu is a Great Eastern life insurance agent and advises on conventional insurance. She can still explain how a takaful plan you have compares, so you can decide with the full picture.