BAITY FINANCE PROTECTION PLAN Baity Finance Protection Plan is Dereasing Benefit Home Finance Protection Plan with a limited Contribution Payment Term (Example: For a Plan with Term of 15 years will have a Contribution Paymen Term of 12 years). It pays out a pre-determined sum if the Covered member passes away or is diagnosed by an appointed Medical Practitioner with a Permanent and Total Disability, whichever arises first, The Benefit is payable only once. If the Benefit is paid, the Plan will be terminated automatically and no further cover will be provided.
The Benefit amount reduces on a monthly basis, decreasing to nil at the end of the Plan term. The reducing amount is pre-determined at the outset of the Plan for the whole term of the Plan. You choose the initial Benefit amount at the start of the Plan. This is normally the same as your Mortgage Finance amount at the outset. The Benefit amount reduces according to a standard outstanding loan schedule with a fixed profit rate of 10.95%.
Our illustration for BAITY includes a table showing the amount that would be payable at the end of each Plan year. However, the Home Finance amount decreases on a monthly basis. Once the Plan is setup, the Benefit amount and the Plan term cannot be changed.
The Benefit is payable only once under this Plan. As soon as the Benefit is paid out, the Plan will be terminated automatically and no further cover will be provided. If any of the Benefits have not been paid out by the end of the term of the Plan, the Plan is terminated with no value. This Plan is reviewed by the Shari'ah Adivsory Board of SALAMA and is Shari'ah compliant. The Benefits:
Family Takaful Cover : A built-in Benefit that provides a lump sum payment if the Covered Member passes away during the term of the Plan.
Permanent and Total Disability : This built-in Benefit provides a lump sum payment if, as a result of a sickness or an accident, the Covered Member becomes permanently and totally disabled, losing the ability to work and earn an income for a period of at least 6 consecutive months. If a Permanent and Total Disability claim is paid, the Plan ends.
Terminal Illness : This optional Benefit pays a lump sum payment as an accelerated payment of the Family Takaful Benefit if the Covered Member is diagnosed as being terminally ill with a life expectancy of less than 6 months within the Plan term. If a Terminal Illness claim is paid, the Plan ends.
