Life insurance and family takaful are essential financial tools that provide a safety net for individuals and their families. While both offer protection against unexpected life events, they differ significantly in their underlying mechanisms, explained Aalaa Haji, senior manager for life operations and business support at Solidarity Bahrain in an exclusive interview.
“Essentially, both life insurance and family takaful are designed to provide financial security in the event of an unforeseen circumstance, such as a critical illness, disability, or death. The primary difference lies in how they operate,” she added. “In life insurance, premiums are invested by the insurance company, which may include non-Sharia-compliant businesses. Conversely, family takaful contributions are exclusively invested in Sharia-compliant businesses.”
Highlighting the significance of life insurance in Bahrain’s socio-cultural and economic context, Ms Haji said life insurance is crucial for ensuring financial stability.
“It offers peace of mind, knowing that your family will be financially secure if something happens to you. Life insurance can help maintain your family’s lifestyle, fund your children’s education, and cover living expenses.”
Talking about uniquely innovative products that Solidarity Bahrain has to offer, she said, “Solidarity Bahrain offers a variety of financial protection plans tailored to individual needs. The Roya Education Plan helps save for a child’s education while providing life insurance. The Roya Future Plan is for general savings and life insurance, while the Roya Whole of Life Plan helps you create a legacy while ensuring your family’s financial security.
“Vantage Life is specifically designed for the expat community with portability features. Additionally, we offer critical illness plans that provide lump sum payments in case of diagnosis. These plans can be gender-specific and cover up to 33 illnesses, from single conditions to comprehensive packages.”
Outlining the key features and benefits of Solidarity Bahrain’s life insurance products, Ms Haji said they include customisation, which allows you to tailor your plan to your specific needs and preferences and flexibility, which lets you choose from various benefits and features.
“This, she added, is in addition to standard features like protection or coverage for critical illnesses, disability, and death as well as savings so you can build wealth for future goals and Peace of mind that helps you ensure your family’s financial security.
Addressing common misconceptions about life insurance and family takaful, the expert said, “People often say ‘I won’t be here to benefit from this money’ and the answer is that many life insurance plans include savings elements and living benefits that can be valuable even if you don’t pass away.
“The claim that ‘life insurance is too expensive’, is easily countered with the many affordable options that are available, with premiums starting as low as BD4 per year.”
As for the belief that “life insurance is not Sharia Compliant”, Ms Haji said family takaful offers Sharia-compliant plans approved by a Sharia supervisory board.
“At Solidarity Bahrain, we believe in empowering individuals to live their lives to the fullest. Our comprehensive financial plans are designed to provide peace of mind and security, allowing you to celebrate life without worry. By focusing on your well-being and aspirations, we aim to create a brighter future for you and your loved ones.”
According to Ms Haji Solidarity Bahrain prioritises customer understanding and support.
“We have implemented a sophisticated onboarding process to ensure customers fully comprehend the terms and conditions of their chosen products. Additionally, our team is readily available to answer any questions or concerns.”
Ms Haji concluded: “By understanding the benefits of life insurance and family takaful and choosing the right product, you can protect your family’s financial future and enjoy peace of mind.”
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