Services · 06
Savings
Save with your eyes on the contract, not the projected column.
Savings-type and endowment-style plans combine a protection element with a savings or investment element. The illustration is a picture, not a guarantee, unless the contract says so.
What people mean by a savings plan
Some life and family takaful plans are built so that part of the contribution pays for protection and part accumulates. People use them for a known future date: a child’s education window, or a sum at a chosen age.
- Guaranteed and non-guaranteed benefits are printed differently. Only the guaranteed column is a promise.
- If you stop paying or surrender early, the amount you receive can be less than the contributions already made.
- A pure savings account, EPF, PRS, and an insurance savings plan have different locks, costs, and protection. Mixing the names up is how people buy the wrong tool.
A sensible order
Protection for a catastrophe comes before a long savings illustration. If the household has no medical card and no income cover, a savings plan should not be the first purchase. We will say so.