One will be surprised to know that in USA and Europe more than 90% families are life assurance covered not under compulsion but due to awareness about its importance and need to a family, while only less than 10% families are life assured / Takaful covered in Pakistan as a result if the bread earner / head of family effected by DISEASE (cancer, heart attack, severe diabetes etc), DISABILITY (accident by air, road etc) or DEATH (untimely) then there used to be a big financial blast in the happy family and his / her family come on road and face financial death every day as nobody even relatives and friends support them financially in a way it should be —- irregular Zakat and charity is not permanent solution to this financial problem in Pakistan environment.
Majority of the Pakistani families don’t want to do financial savings and planning which include family financial protection by life assurance / Takaful coverage. To avoid this wise move of savings and planning, they used to say that they believe on Allah Tawakal. In fact it is not like that, actually they have back of their mind that if something bad happen to their family and need huge money, then their uncles, brothers, sisters, and friends should contribute money and will solve their financial problem. They prefer begging before relatives and friends rather than planning their financial needs wisely. We need to break this begging bowls of our Pakistani families and educate them to live with joy and respect.
So, there is a dire need to create awareness about the importance and need of life assurance / Takaful among the Pakistani families to make them live with the same standard and with respect even if something bad happen to them as other nations do. My vision and mission , being a Chartered Accountant, is to convert less than 10% life assured families to more than 90% life assured / Takaful covered families.
It is therefore advisable to all organizations, businesses and institutions, to introduce EFU Takaful coverage for their management, executive and support employees as a facility, which will work as a concrete cement to enforce the employer employee relationship on long term sustain and retain partnership basis, due to the following benefits to both employer and employees:
Say after 20 years when sons / daughters of an employee have an age for higher education or marriage and EFU Takaful make them available cash of more than 1.5 CRORE rupees. How they will feel without burden on employer or begging before relatives and friends? If, Allah forbids, anything bad happened to the employee due to DISEASE, DISABILITY OR ‘DEATH and EFU Takaful pay more than Rs. 2.5 CRORES to their family to meet family financial needs with respect. How it will be to their family without burden on employer or begging before relatives and friends?
When employee come to retirement age of say 60 years and EFU Takaful give cheque for more than Rs. 3.5 CRORES. How they will feel without burden on employer or begging before relatives and friends?
Participant / policyholder including salaried class and businesses (excluding company) may enjoy income tax rebate every year on contribution paid upto limit of Rs. 2,000,000/-.
When employees need money for to meet any huge expenses like children’s higher education / marriage, hospitalization, repayment of loan etc, they will not come to employer as their financial needs are being met by EFU Takaful with joy and respect any time without mark-up / interest.
EFU Takaful allow employer to pay employee yearly contribution on monthly basis to EFU company if having more than 10 employees, by deducting from their monthly salary or by paying by employer as expense.
Organization may obtain EFU Takaful plan for partners or directors as well to secure their business and family financial needs in rainy days.
EFU coverage is basically a family financial protection and secondary as an investment. For example if a Participant has deposited Rs. 500,000/- in a bank saving account and same amount of Rs. 500,000/- paid as year contribution in EFU. If Allah forbids next month Participant expired due to accidental death, then bank will pay to his family Rs. 500,000/- plus one month interest at say 5% p.a while EFU Company will pay sum covered of Rs. 4.75 CRORES. This is called family financial protection.
EXAMPLE which shows how EFU Takaful Plans cover multi-purpose financial needs of a family and give multiple benefits to participant / policyholder is also mentioned herewith to understand its benefits and facilities in better way.
EFU management believes that every healthy OR sick family must be life assurance / Takaful covered so that they may live with joy and respect. So EFU has designed various plans to meet family financial needs which includes family financial protection, children higher education / marriage, retirement, house wives / working female, for critically sick person, hospitalization, pilgrimage for Hajj, Umrah or Ziarat, savings mobilization etc with yearly contribution from alteast Rs. 8,500/- to above Rs. 1,500,000/- for every class of families rich and poor, salaried or businessmen etc.
EFU Takaful give maximum benefits / facilities to a planned young family. As age grows Takaful become expensive or sometimes become impossible. I suggest that old age employee / parent can cover their family financially by taking Takaful in the name of their son or daughter who are salaried working / business partner and pay contribution by parents. Even old age grand parents may gift such EFU coverage to grandchildren for their higher education / wedding by obtaining coverage in the name of their children and pay contribution by grandparent FOR THEIR CHILDREN FINANCIAL BETTERMENT. It is the fact of life that legal income of most of the sons and son in laws are not lucrative, so it will be a big financial support by their parents or grand parents.