Pri-TI (Takaful/Insurance Trust)
A Takaful/Insurance Trust is a trust created from Takaful/Insurance proceeds by appointing as-Salihin Trustee Berhad as assignee (through Absolute Assignment) to receive Takaful/Insurance proceeds for the benefit of the policy owner (during critical illness, coma or Total Permanent Disability) or beneficiaries.
Advantages Of Pri-TI Compared To Hibah Nomination
Death
- Able to nominate substitute beneficiaries;
- Add conditions to distribute;
- Give instructions for progressive payment or create trust fund;
- Can control spending habits of spouse or children;
- Avoid squabble among family members;
- Distribution of policy proceeds to children if they are still underage (18 years old) during death of Policy Owner.
Total Permanent Disability (TPD)/Coma
- Policy proceeds will be properly utilised for the benefit of policy owner who suffers from coma or TPD;
- Avoid possibility of breach of trust and mismanagement of fund.
Benefits Of Pri-TI
- Can avoid any misconduct and breach of trust due to the trust being managed by as-Salihin;
- Can create a legacy through trust fund;
- Protecting rights of specific beneficiaries, especially special children;
- The policy proceeds is not subjected to Faraid and estate administration, takes effect immediately according to the terms of the Trust Deed;
- Can control beneficiaries spending habits (specify purpose, amount and manner of distribution);
- Can be used for payment of debts and estate administration fee;
- Subject to Bankruptcy Act, trust fund protected against any creditor’s claim;
- Administration of the policy owner’s money if policy owner suffers Total Permanent Disability (TPD) or coma..
- Ensure continuity of cash flow despite of Proprietor’s inability to access his/her account due to his/her disabilit.;
- Allow the Proprietor to control usage of trust fund during his/her inability;
- Allow the Proprietor to prioritize the usage of the trust fund after his/her death;
- Avoid any misusage of the trust fund. The trust fund will be administered according to the Proprietor’s instruction.
