FAQ - Appendix 3 (Family Takaful and Life Insurance)
Insurer Member (Takaful & Insurance Benefits Protection)
APPENDIX 3:
Family takaful and life insurance business: List of examples of takaful or insurance benefits protected under each Protected Benefit category
Notes:
- The examples are not exhaustive, and meant to provide illustration on the takaful or insurance benefits for each Protected Benefit category.
- The Protected Benefits under TIPS are subject to the terms and conditions of the certificate or policy contract issued by the insurer members (IMs).
Protected Benefits in the Protected Benefits Regulations 2020
- Death and related benefits arising from death (“Death”)
- Disability and related benefits arising from disability (“Disability”)
- Illness and related benefits arising from illness (“Illness”)
- Healthcare
- Pecuniary loss
- Maturity and related benefits arising from maturity (“Maturity”)
- Surrender and related benefits arising from surrender (“Surrender”)
- Income
Examples of takaful or insurance benefits
| Product | 1. Death | 2. Disability | 3. Illness | 4. Healthcare | 5. Pecuniary loss | 6. Maturity | 7. Surrender | 8. Income |
|---|---|---|---|---|---|---|---|---|
| Ordinary Life (Non-participating) | ||||||||
| Endowment – Universal Life | • Death by accidental causes • Death by non-accidental causes |
• Total permanent disability | • Maturity benefit | • Guaranteed Cash Payments (if opted to withdraw yearly) • Accumulated Cash Payments (if opted to reinvest to life fund, or deposit with the company) |
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| Medical and Health | • Death • Funeral expenses • Repatriation of mortal remains |
• Maternity benefit¹ • Critical illness • Zika and dengue cash allowance • Congenital anomalies of new born babies |
• Room and board • Hospital supplies and services • Pre-hospital specialist/ diagnostic test • Day surgery • Emergency accidental outpatient treatment • Second surgical opinion • Hospital income • International emergency medical evacuation • Outpatient services for general practitioner and specialist consultants |
• Health screening • Cancer maker screening |
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| • Nutritional allowance during/after hospitalisation • Medical report • Reimbursement of skin grafting due to burns and skin cancer • Reimbursement of medical expenses for breast reconstructive surgery due to breast cancer • Compassionate care allowance |
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| Term – Mortgage | • Death benefit • Funeral expenses • Bereavement allowance |
• TPD benefit • PPD benefit • TTD benefit • PTD benefit |
• Critical illness • Terminal illness |
• Cash value (if any)² | • Cash value (if any)² | |||
| Term Others | • Death benefit • Funeral expenses • Repatriation benefit |
• TPD benefit • PPD benefit • TTD benefit • PTD benefit • Weekly benefit due to temporary disablement |
• Critical illness (accelerated or additional) | • Hospital income benefit • Hospital and surgical benefits (room and board, surgery, outpatient treatments, pre and post hospitalisation etc) |
• No claim bonus | |||
| Whole Life | • Death benefit • Funeral expenses • Bereavement allowance |
• TPD benefit • PPD benefit • TTD benefit • PTD benefit • Weekly benefit due to temporary disablement |
• Critical illness • Terminal illness |
• Maturity benefit | • Surrender benefit | • Guaranteed annual cash payments | ||
| Ordinary Life (Participating) | ||||||||
| Endowment, Whole Life or Term - Others³ | • Death benefit • Terminal dividend⁴ • Reversionary bonus⁵ |
• TPD benefit • Terminal dividend⁴ • Reversionary bonus⁵ |
• Critical illness | • Maturity benefit • Terminal dividend⁴ • Reversionary bonus⁵ |
• Surrender benefit • Terminal dividend⁴ • Reversionary bonus⁵ |
• Guaranteed cash payments (if opted to withdraw yearly) • Accumulated cash payments (if opted to accumulate until maturity) |
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| • Annual cash dividend (if opted to withdraw yearly) • Accumulated annual cash dividend (if opted to accumulate until maturity) |
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| Investment-linked (Maturity, surrender and income benefits payable from the unit portion are excluded from TIPS protection) | ||||||||
| Endowment | • Death benefit • Account value |
• TPD benefit • Account value |
• Maturity benefit⁶ | • Surrender benefit⁶ | • Annual education pay out • Loyalty bonus |
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| Whole Life | • Death benefit • Account Value • Interim death benefit |
• TPD benefit • Account value |
• Infectious disease benefit | • Surrender benefit⁶ | • Annual dividend | |||
| Deferred annuity | • Death benefit | • TPD benefit • PPD benefit |
• Maturity benefit⁶ | • Surrender benefit⁶ | • Guaranteed regular income | |||
| Annuity (Non-participating) | ||||||||
| Deferred Annuity | • Death benefit • Account value |
• TPD benefit • Account value |
• Critical illness | • Survival benefit • Account value |
• Surrender benefit | • Annual guaranteed income payments | ||
| Immediate Annuity | • Death benefit • Account value |
• TPD benefit • Account value |
• Surrender benefit | • Monthly guaranteed income benefits | ||||
| Annuity (Participating) | ||||||||
| Deferred Annuity (EPF) | • Annuity payments to nominee⁷ • Accrued benefits |
• Annuity payments • Accrued benefits |
• Cash surrender value • Account value |
• Annuity payments | ||||
| Rider | ||||||||
| Medical Rider | • Death • Funeral expenses • Repatriation of mortal remains |
• Maternity benefit⁸ • Critical illness • Zika and dengue cash allowance • Congenital anomalies of new born babies |
• Hospital and surgical benefits (room and board, surgery, outpatient treatments, pre and post hospitalisation etc) • Compassionate care allowance |
• Health screening • Cancer maker screening |
• No claim bonus | |||
| Retirement Saving Rider | • Monthly guaranteed income | |||||||
| Lady Critical Illness Rider | • Out of action indemnity benefit due to TTD or PTD | • Female illness benefit (Female organ cancer, Carcinoma in situ, Systemic lupus Erythematosus with severe kidney complications) • Severe rheumatoid arthritis • Hormone replacement therapy • Congenital anomalies benefit • Pregnancy complications |
• Breast lumpectomy benefit • Mastectomy benefit • Breast reconstructive surgery • Female reproductive organ surgery • Female reproductive organ surgery • Facial reconstructive surgery • Skin grafting • Osteoporotic fracture surgery • Psychotherapy for loss of legal spouse or child • Death of foetus |
• Compassionate cash due to snatch theft (only police report is required) | ||||
| Term Rider | • Death benefit | |||||||
| Disability Income Rider | • Disability income | |||||||
| Saver/Payor Rider | • Accumulated value upon death | • Accumulated value upon TPD | • Accumulated value upon expiry⁹ | • Accumulated value upon surrender¹⁰ | ||||
| Personal Accident Rider | • Accidental Death • Compassionate Cash in the event of death • Repatriation benefit |
• Permanent Total Disablement | • Outpatient medical benefit • In-hospital medical benefit • Snatch theft/robbery inconvenience benefit with injury and medical report |
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| Hospital Benefit Rider | • Hospital income benefit | |||||||
| Income Rider | • Cash endowment | |||||||
| Refund of Premium Rider | • Death benefit | • TPD benefit | • Maturity benefit |
¹ Maternity benefit in this category is referring to lump sum payment upon normal delivery, complicated delivery and miscarriage. Same benefit can be found under Female Critical Illness related plans which is classified under Illness. Maternity costs related to hospital and surgical benefits (e.g. room and board, operating theatre, surgical fees, anesthetist fee etc) are classified under Healthcare. ² Typical mortgage products are single contribution/premium. Hence, early settlement may generate cash value which may be payable upon surrender or maturity. ³ Product benefits for all three (3) sub categories are similar. The differences are mainly on period of coverage (short term or long term) and expiry age (for whole life, common expiry age is 100). ⁴ Terminal dividend is a related benefit payable one time only upon death, TPD, maturity or surrender. ⁵ Reversionary bonus is a related benefit payable one time upon death, TPD, maturity or surrender. ⁶ For more sophisticated investment-linked products, maturity and surrender benefit may be payable from non-unit portion and will be protected under TIPS. ⁷ This example is using a plan that provides for three (3) stages: - (i) upon the death of the annuitant before age 55, a ten-year annuity will be paid to the nominee; (ii) upon the death of the annuitant between age 55 – 65, remaining year (max 10 years) annuity will be paid to the nominee; (iii) if the annuitant survives from age 55 – 100, annuity payment will be paid to the annuitant. ⁸ Maternity benefit in this category is referring to lump sum payment upon normal delivery, complicated delivery and miscarriage. Same benefit can be found under Female Critical Illness related plans which is classified under Illness. Maternity costs related to hospital and surgical benefits (e.g. room and board, operating theatre, surgical fees, anesthetist fee etc) are classified under Healthcare. ⁹ Under a typical rider, this maturity will be paid together with the main certificate / policy. ¹⁰ Under a typical rider, this surrender will be paid together with the main certificate / policy.
Acronym
TPD : Total Permanent Disability/Disablement PPD : Partial Permanent Disability/Disablement TTD : Total Temporary Disability/Disablement PTD : Partial Temporary Disability/Disablement PO : Policy or certificate owner IM : Insurer member
# APPENDIX 3: Family takaful and life insurance business: List of examples of takaful or insurance benefits protected under each Protected Benefit category **Notes:** 1. The examples are not exhaustive, and meant to provide illustration on the takaful or insurance benefits for each Protected Benefit category. 2. The Protected Benefits under TIPS are subject to the terms and conditions of the certificate or policy contract issued by the insurer members (IMs). ### Protected Benefits in the Protected Benefits Regulations 2020 1. Death and related benefits arising from death (“Death”) 2. Disability and related benefits arising from disability (“Disability”) 3. Illness and related benefits arising from illness (“Illness”) 4. Healthcare 5. Pecuniary loss 6. Maturity and related benefits arising from maturity (“Maturity”) 7. Surrender and related benefits arising from surrender (“Surrender”) 8. Income ### Examples of takaful or insurance benefits | Product | 1. Death | 2. Disability | 3. Illness | 4. Healthcare | 5. Pecuniary loss | 6. Maturity | 7. Surrender | 8. Income | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Ordinary Life (Non-participating)** | | | | | | | | | | Endowment – Universal Life | • Death by accidental causes<br>• Death by non-accidental causes | • Total permanent disability | | | | • Maturity benefit | | • Guaranteed Cash Payments (if opted to withdraw yearly)<br>• Accumulated Cash Payments (if opted to reinvest to life fund, or deposit with the company) | | Medical and Health | • Death<br>• Funeral expenses<br>• Repatriation of mortal remains | | • Maternity benefit¹<br>• Critical illness<br>• Zika and dengue cash allowance<br>• Congenital anomalies of new born babies | • Room and board<br>• Hospital supplies and services<br>• Pre-hospital specialist/ diagnostic test<br>• Day surgery<br>• Emergency accidental outpatient treatment<br>• Second surgical opinion<br>• Hospital income<br>• International emergency medical evacuation<br>• Outpatient services for general practitioner and specialist consultants | | • Health screening<br>• Cancer maker screening | | | | | | | | • Nutritional allowance during/after hospitalisation<br>• Medical report<br>• Reimbursement of skin grafting due to burns and skin cancer<br>• Reimbursement of medical expenses for breast reconstructive surgery due to breast cancer<br>• Compassionate care allowance | | | | | | Term – Mortgage | • Death benefit<br>• Funeral expenses<br>• Bereavement allowance | • TPD benefit<br>• PPD benefit<br>• TTD benefit<br>• PTD benefit | • Critical illness<br>• Terminal illness | | | • Cash value (if any)² | • Cash value (if any)² | | | Term Others | • Death benefit<br>• Funeral expenses<br>• Repatriation benefit | • TPD benefit<br>• PPD benefit<br>• TTD benefit<br>• PTD benefit<br>• Weekly benefit due to temporary disablement | • Critical illness (accelerated or additional) | • Hospital income benefit<br>• Hospital and surgical benefits (room and board, surgery, outpatient treatments, pre and post hospitalisation etc) | | | | • No claim bonus | | Whole Life | • Death benefit<br>• Funeral expenses<br>• Bereavement allowance | • TPD benefit<br>• PPD benefit<br>• TTD benefit<br>• PTD benefit<br>• Weekly benefit due to temporary disablement | • Critical illness<br>• Terminal illness | | | • Maturity benefit | • Surrender benefit | • Guaranteed annual cash payments | | **Ordinary Life (Participating)** | | | | | | | | | | Endowment, Whole Life or Term - Others³ | • Death benefit<br>• Terminal dividend⁴<br>• Reversionary bonus⁵ | • TPD benefit<br>• Terminal dividend⁴<br>• Reversionary bonus⁵ | • Critical illness | | | • Maturity benefit<br>• Terminal dividend⁴<br>• Reversionary bonus⁵ | • Surrender benefit<br>• Terminal dividend⁴<br>• Reversionary bonus⁵ | • Guaranteed cash payments (if opted to withdraw yearly)<br>• Accumulated cash payments (if opted to accumulate until maturity) | | | | | | | | | | • Annual cash dividend (if opted to withdraw yearly)<br>• Accumulated annual cash dividend (if opted to accumulate until maturity) | | **Investment-linked (Maturity, surrender and income benefits payable from the unit portion are excluded from TIPS protection)** | | | | | | | | | | Endowment | • Death benefit<br>• Account value | • TPD benefit<br>• Account value | | | | • Maturity benefit⁶ | • Surrender benefit⁶ | • Annual education pay out<br>• Loyalty bonus | | Whole Life | • Death benefit<br>• Account Value<br>• Interim death benefit | • TPD benefit<br>• Account value | • Infectious disease benefit | | | | • Surrender benefit⁶ | • Annual dividend | | Deferred annuity | • Death benefit | • TPD benefit<br>• PPD benefit | | | | • Maturity benefit⁶ | • Surrender benefit⁶ | • Guaranteed regular income | | **Annuity (Non-participating)** | | | | | | | | | | Deferred Annuity | • Death benefit<br>• Account value | • TPD benefit<br>• Account value | • Critical illness | | | • Survival benefit<br>• Account value | • Surrender benefit | • Annual guaranteed income payments | | Immediate Annuity | • Death benefit<br>• Account value | • TPD benefit<br>• Account value | | | | | • Surrender benefit | • Monthly guaranteed income benefits | | **Annuity (Participating)** | | | | | | | | | | Deferred Annuity (EPF) | • Annuity payments to nominee⁷<br>• Accrued benefits | • Annuity payments<br>• Accrued benefits | | | | | • Cash surrender value<br>• Account value | • Annuity payments | | **Rider** | | | | | | | | | | Medical Rider | • Death<br>• Funeral expenses<br>• Repatriation of mortal remains | | • Maternity benefit⁸<br>• Critical illness<br>• Zika and dengue cash allowance<br>• Congenital anomalies of new born babies | • Hospital and surgical benefits (room and board, surgery, outpatient treatments, pre and post hospitalisation etc)<br>• Compassionate care allowance | • Health screening<br>• Cancer maker screening | | | • No claim bonus | | Retirement Saving Rider | | | | | | | | • Monthly guaranteed income | | Lady Critical Illness Rider | | • Out of action indemnity benefit due to TTD or PTD | • Female illness benefit (Female organ cancer, Carcinoma in situ, Systemic lupus Erythematosus with severe kidney complications)<br>• Severe rheumatoid arthritis<br>• Hormone replacement therapy<br>• Congenital anomalies benefit<br>• Pregnancy complications | • Breast lumpectomy benefit<br>• Mastectomy benefit<br>• Breast reconstructive surgery<br>• Female reproductive organ surgery<br>• Female reproductive organ surgery<br>• Facial reconstructive surgery<br>• Skin grafting<br>• Osteoporotic fracture surgery<br>• Psychotherapy for loss of legal spouse or child<br>• Death of foetus | • Compassionate cash due to snatch theft (only police report is required) | | | | | Term Rider | • Death benefit | | | | | | | | | Disability Income Rider | | • Disability income | | | | | | | | Saver/Payor Rider | • Accumulated value upon death | • Accumulated value upon TPD | | | | • Accumulated value upon expiry⁹ | • Accumulated value upon surrender¹⁰ | | | Personal Accident Rider | • Accidental Death<br>• Compassionate Cash in the event of death<br>• Repatriation benefit | • Permanent Total Disablement | | • Outpatient medical benefit<br>• In-hospital medical benefit<br>• Snatch theft/robbery inconvenience benefit with injury and medical report | | | | | | Hospital Benefit Rider | | | | • Hospital income benefit | | | | | | Income Rider | | | | | | • Cash endowment | | | | Refund of Premium Rider | • Death benefit | • TPD benefit | | | | • Maturity benefit | | | ¹ Maternity benefit in this category is referring to lump sum payment upon normal delivery, complicated delivery and miscarriage. Same benefit can be found under Female Critical Illness related plans which is classified under Illness. Maternity costs related to hospital and surgical benefits (e.g. room and board, operating theatre, surgical fees, anesthetist fee etc) are classified under Healthcare. ² Typical mortgage products are single contribution/premium. Hence, early settlement may generate cash value which may be payable upon surrender or maturity. ³ Product benefits for all three (3) sub categories are similar. The differences are mainly on period of coverage (short term or long term) and expiry age (for whole life, common expiry age is 100). ⁴ Terminal dividend is a related benefit payable one time only upon death, TPD, maturity or surrender. ⁵ Reversionary bonus is a related benefit payable one time upon death, TPD, maturity or surrender. ⁶ For more sophisticated investment-linked products, maturity and surrender benefit may be payable from non-unit portion and will be protected under TIPS. ⁷ This example is using a plan that provides for three (3) stages: - (i) upon the death of the annuitant before age 55, a ten-year annuity will be paid to the nominee; (ii) upon the death of the annuitant between age 55 – 65, remaining year (max 10 years) annuity will be paid to the nominee; (iii) if the annuitant survives from age 55 – 100, annuity payment will be paid to the annuitant. ⁸ Maternity benefit in this category is referring to lump sum payment upon normal delivery, complicated delivery and miscarriage. Same benefit can be found under Female Critical Illness related plans which is classified under Illness. Maternity costs related to hospital and surgical benefits (e.g. room and board, operating theatre, surgical fees, anesthetist fee etc) are classified under Healthcare. ⁹ Under a typical rider, this maturity will be paid together with the main certificate / policy. ¹⁰ Under a typical rider, this surrender will be paid together with the main certificate / policy. ### Acronym TPD : Total Permanent Disability/Disablement PPD : Partial Permanent Disability/Disablement TTD : Total Temporary Disability/Disablement PTD : Partial Temporary Disability/Disablement PO : Policy or certificate owner IM : Insurer member
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