Mortgage Reducing Term Takaful 3

• Protection Against Untimely Death or Disability

• In the event of untimely death or total and permanent disability (TPD), the outstanding financing amount according to the Schedule of Sum Covered will be settled, leaving your family free from encumbrances. Dependents will be free from indebtedness in having to settle the mortgage on the house.

• Protect Your Family Home

• When your home financing is fully covered, your family members or dependents do not have to worry about non-payment of financing should the unthinkable happen to you. It protects your family / dependents from being evicted from the house.

• Additional Coverage for Accidental Death

• An additional 10% of the outstanding amount covered in accordance with your Schedule of Sum Covered will be paid in the event of accidental death.

• Flexible Contribution Payment Options

• You have the flexibility of paying the contribution yourself or by obtaining a financial assistance from the bank.

• Guaranteed 24 hours Global Protection

• You will be protected 24 hours a day, anywhere in the world.

• Early settlement

• In the event that you choose to make an early settlement on your home financing, you have the flexibility of either continuing the coverage or surrendering the plan and receive the cash surrender value due to you at the time of surrender of the plan.

Tabarru' (donation) - The contract applied among the Participants. It is the amount deducted from the Participant’s Account Fund and allocated into the Participants’ Risk Fund as a donation for the purpose of mutual help and assistance to fellow participants in need. The Tabarru’ rate is not guaranteed, and You may need to top up the Contribution if the Tabarru’ rate is revised.

Wakalah (agency) - The contract between the Participant and AIA PUBLIC Takaful Bhd. (as Takaful operator), where the Participant authorises AIA PUBLIC Takaful Bhd. to act on his or her behalf to conduct the affairs of Takaful operations which includes underwriting, investment, certificate servicing and claims processing. AIA PUBLIC Takaful Bhd. will take a portion of the Participant’s contribution as Wakalah Fee in return of these services. In performing the duties under the Wakalah contract, AIA PUBLIC Takaful Bhd. may further delegate or engage any third party to perform relevant task in takaful operations.

Mudarabah (profit sharing) - The contract between Participant and AIA PUBLIC Takaful Bhd., where Participant provides capital in the Participant’s Account Fund to be managed or invested by AIA PUBLIC Takaful Bhd. where any Investment Profit arising from the Participant’s Account Fund is shared between the AIA PUBLIC Takaful Bhd. and Participant in the proportion of 20% and 80% respectively whilst any loss will be borne by the Participant up to the capital value. AIA PUBLIC Takaful Bhd. may further delegate or engage a third party to perform certain tasks that are relevant for the investment activities.

Ju'alah (performance incentive) - Means a reward contract between the Participant and AIA PUBLIC Takaful Bhd. whereby AIA PUBLIC Takaful Bhd. will be entitled to fifty percent (50%) of the Surplus arising from the Participants’ Risk Fund as Ujrah (performance fee) for managing the fund efficiently which result in the Surplus.

Qard (interest-free loan) - An interest-free loan provided by AIA PUBLIC Takaful Bhd. to the Participant Risk Fund (PRF) in the event it becomes deficit to enable it to pay Takaful benefit(s) to eligible Participants. This amount will be recovered from the PRF once the PRF becomes sufficient, before any distribution of surplus is made.

Conditional Hibah (gift) - The Participant will be entitled to fifty percent (50%) from the Participants’ Risk Fund as conditional Hibah, based on their Tabarru’ contribution, on the basis of Ju’alah. If the Person Covered passes away, the death benefit will be given to the nominated beneficiary as a conditional Hibah.

Participants’ Risk Fund (PRF) - PRF is the fund where Tabarru' (donation) is credited into for the purpose of providing mutual protection and meeting claims on the events/risks covered under the Takaful certificate. The actual amount of expenses incurred for direct claims related expenses (e.g. investigation cost) and investment cost directly attributable to PRF (e.g. transaction costs directly attributable to the acquisition of an investment asset of the takaful fund) will be charged to the PRF, as approved by our Shariah Committee. Please note that the expenses are charged at fund level and not to individual certificate.

Participant’s Account Fund (PAF) - The individual PAF is the fund whereby a portion of the contributions paid by the participants after the deduction of Wakalah fee are allocated. The Tabarru' of the basic plan will be deducted from this fund. The actual amount of expenses incurred for investment cost directly attributable to PAF (e.g. transaction costs directly attributable to the acquisition of an investment asset of the takaful fund) will be charged to the PAF, as approved by our Shariah Committee. Please note that the expenses are charged at fund level and not to individual certificate.

Examples of the events not covered by the MRTT3 include:

1. For Death:

• Suicide while sane or insane within 6 months from the effective date of takaful coverage.

2. For Total and Permanent Disability:

• Attempted suicide while sane or insane and whether felonious or not, self- inflicted bodily injury, disorderly conduct or deliberate exposure to unnecessary danger; or injuries sustained while engaging in hunting, mountaineering, aviation¹ (except as a fare-paying passenger on a commercial airline), naval, military or aeronautical service, or racing (other than foot-racing) of any kind; or existing conditions at the effective date of takaful coverage.

3. For Accidental Death:

• Suicide or attempt to commit suicide, while sane or insane or self-inflicted injuries; or injuries sustained while under the influence of alcohol, any non-prescribed drugs, narcotic or illegal drugs.

4. And other standard exclusions.

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