Investment-linked takaful plans

First step: Assess how much savings you will need 

Estimating how much you will need for retirement can be a very daunting task, especially as we don’t know how long we’re going to live, how much medical care we will need or how much profit rate we will earn on our investments—that means each of us will have a different number in our mind when it comes to our retirement.

Second step: Balance your objectives and principal considerations 

When it comes to investing for legacy planning, you should clearly assess your financial capacity and weigh it with your willingness to take risk as well as type of risk(s). It’s important as investing in an Investment-Linked Takaful plan is a long term commitment. 

Capacity: Time horizon, financial situation

Willingness: Investment objective, risk tolerance, attitude to risk

Here are 4 key personality traits which help you to evaluate which fund choices you can choose, and assess what kind of investor you are.

Accumulators: 

1. Keenly interested in accumulating wealth.

2. What to steer investment decisions.

3. Confident of the investment decisions they take.

Followers

1. Likes to follow friends or new investment fad.

2. May lack interest or knowledge in investing.

3. Decision making process often lacks long term planning.

Preservers

1. Emphasize financial security.

2. Anxious about losses and short term performance.

3. Fear of making wrong investment decisions.

Independents

1. Hold original ideas and like to be involved in the investment process.

2. Often very analytical and critical thinkers.

3. May exhibit bias in decisions due to own research.

Your contribution depends on the following criteria regarding the family members covered under the certificate: 

• Age 

• Health status 

• Smoker status 

• Gender 

• Amount of coverage 

• Term of coverage

• Occupation

• Payment frequency