Education Takaful

Abstract

Family Takaful Plan for Education is one of the ways in which parents can create a fund to pay for higher education for their child. The cost of higher education, whether in college or institute or university, is ever increasing. This allows parents to help even if they die before their child grows up. Parents are also entitled to a tax exemption for their monthly payments. This is a systematic way of providing a fund, whether as a saving or as a fund for the child if something happens to the parents. This plan is based on the concept of al-Mudharabah, the Islamic ethical system that puts man in a central place in the universe: it shows the equilibrium among men.

A significant contribution to this chapter has been made by the practices, experiences and thoughts of Bank Negara, Takaful Malaysia, Takaful Ikhlas, Takaful Nasional, Etiqa Takaful, IBFIM, IIUM, MII and others (Malaysia).