What do you need to look out for when getting a Takaful plan?
- First, make sure you are dealing with an agent registered with the Malaysian Takaful Association (MTA). You can check if your agent is registered here. You can also look at online or over-the-counter Takaful plans where you can deal directly with the Takaful Operator without any involvement of intermediaries such as agents, financial advisers, or bancatakaful partners. Currently, the Takaful plans that are available under these direct channels are term, critical illness, and medical and health.
- For Islamic finance products such as Takaful, the products must follow the financial institution’s internal guidelines and Bank Negara Malaysia’s (BNM) guidelines on Shariah-compliance. So, it is important to check that the Takaful operator is registered with BNM to ensure the plans/products offered are Shariah-compliant. If you’re getting coverage from a company that seems new or you’ve never heard of, check this list to see if they are registered.