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what is Takaful and Types of Takaful ? Meaning, Definition, and Example
Takaful is an Islamic insurance concept based on mutual cooperation, where members contribute to a pool of funds to support each other in times of need.
For complete lecture on Takaful in Islam , and for more lectures on Islamic Banking and Finance visit: https://aims.education/study-online/takaful-meaning-definition-and-principles/
The meaning of takaful is derived from the Arabic word "kafala," which means guaranteeing or mutual support. Unlike conventional insurance, takaful operates on principles of shared responsibility, transparency, and ethical investment. There are different types of takaful, with the most common being family takaful, which focuses on providing financial protection for individuals and their families, such as in the case of death or critical illness. Other types of takaful include general takaful, which covers risks related to property, vehicles, and liability.
Each type of takaful is designed to meet the specific needs of participants while adhering to Shariah principles.
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