1. Family Takaful 3rd International Conf. & Exhibition Islamabad – Nov. 2009 Azeem Pirani Regional Manager – Pakistan FWU AG

2. 2 Contents What is Family Takaful Life Insurance in Pakistan Family Takaful Products How does Family Takaful Function? Need of Family Takaful Powerful Proposition Conclusion

3. What is Family Takaful? It is an Islamic alternative to conventional life insurance The concept is based on the principles of Risk Sharing (as opposed to Risk Transfer) Life cannot be insured but the beneficiaries can be financially supported by a system of mutual assistance

4. Life Insurance in Pakistan

5. Family Takaful Products? For Corporate Customers Group Healthcare for employees Retirement Income Plans Salary Continuation in case of employees death or disability For Individual Customers Savings & Protection Plans Education Plan Retirement Income Plan Mortgage Takaful

6. How does Family Takaful function? Participants pool their savings into two separate accounts with the FT Operator –Into Waqf Pool: As taburru: to eliminate Riba and make Gharrar & Qimar ineffective Nobody owns the Waqf Pool;The FT Operator acts as its Wakeel All claims are paid from the Waqf Pool –Into Participants Investment Account: Which is unit-linked Contributions are invested to generate Halal profits for members

7. How does Family Takaful function? (cont)

8. Need of Family Takaful Against financial loss from: -Death -Disability -Medical Illness In order to fulfill short-term & long-term needs such as: -Children’s education and marriage -Purchasing a new house -Affording Hajj/Umrah Expenses -Retirement Income, etc Protection Investment Growth Participant Takaful Fund (PTF) Participant Investment Account (PIA)

9. Powerful Proposition? Win-Win The only protection + savings tool Offering Halal income Financial protection against specific risks Surplus Sharing

10. Conclusion Dire need for financial protection in our society. Shariah compliant nature will allow it to reach those consumers who would rather have a Halal option.

11. Jazak-Allah Khair 11