---
title: "What is Family takaful? | IslamicOpenFinance™"
description: "Takaful covering risks to people, such as death, disability or illness, often with a savings or investment element."
url: https://islamicopenfinance.com/glossary/family-takaful/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Takaful](https://islamicopenfinance.com/glossary/#takaful)

Takaful

# Family takaful

Takaful covering risks to people, such as death, disability or illness, often with a savings or investment element.

Family takaful is the takaful alternative to life insurance. AAOIFI's takaful standard describes it as cover for the risks of death, disability, injury or illness, for an individual or a group, with the benefit paid to the participant or a beneficiary as agreed. The IFSB's conduct standard notes that contributions to family takaful schemes include, besides the service fee and the donation to the risk fund, a savings or investment component credited to the participant's investment fund, so each contribution has to be split and tracked across funds.

## Sources

- [AAOIFI Shari'ah Standards, English edition (full text, PDF): Shari'ah Standard No. 26, Islamic Insurance, Appendix C, mutual insurance as the alternative to life insurance](https://aaoifi.com/wp-content/uploads/2017/12/Shariaa-Standards-ENG.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Takaful** Mutual cover: participants contribute to a common fund, as donations, to help one another against specified losses.](https://islamicopenfinance.com/glossary/takaful/) [**Participants' investment fund** In family takaful, the fund holding participants' savings and investment contributions, owned individually by each participant.](https://islamicopenfinance.com/glossary/participants-investment-fund/) [**Participants' risk fund** The pool of donated contributions from which takaful claims are paid, owned collectively by participants and managed by the operator.](https://islamicopenfinance.com/glossary/participants-risk-fund/) [**Tabarru** The donation portion of a takaful contribution, paid into the risk fund to meet claims as mutual help.](https://islamicopenfinance.com/glossary/tabarru/) [**General takaful** Takaful covering property and liability risks, such as motor, fire or travel, typically written for one year.](https://islamicopenfinance.com/glossary/general-takaful/)

**Takaful**

1. [Takaful](https://islamicopenfinance.com/glossary/takaful/)
2. [Tabarru](https://islamicopenfinance.com/glossary/tabarru/)
3. [Participants' risk fund](https://islamicopenfinance.com/glossary/participants-risk-fund/)
4. [Participants' investment fund](https://islamicopenfinance.com/glossary/participants-investment-fund/)
5. [Shareholders' fund (takaful)](https://islamicopenfinance.com/glossary/shareholders-fund/)
6. [Takaful operator](https://islamicopenfinance.com/glossary/takaful-operator/)
7. [Wakalah model (takaful)](https://islamicopenfinance.com/glossary/wakalah-model/)
8. [Takaful participant](https://islamicopenfinance.com/glossary/takaful-participant/)

[All 221 terms](https://islamicopenfinance.com/glossary/)