GPOD Wealth
Islamic Takaful & Protection
Our protection plans are based on the Islamic concept of mutual cooperation (Takaful), providing ethical alternatives to conventional insurance. These plans protect what matters most without compromising your values.
What Is Takaful?
Takaful is an Islamic alternative to conventional insurance based on the principles of mutual cooperation (ta'awun) and donation (tabarru'). The word "Takaful" comes from the Arabic word "kafala," which means "guaranteeing each other" or "joint guarantee."
Unlike conventional insurance, which involves elements of gambling (maysir), uncertainty (gharar), and interest (riba) that are prohibited in Islam, Takaful operates on a model of shared responsibility, risk pooling, and mutual assistance.
The Historical Development of Takaful
The concept of mutual protection has deep roots in Islamic history. The early practice of 'Aqilah, where members of a tribe would contribute to compensate the family of a deceased person, represents an early form of mutual insurance. Modern Takaful as we know it today began to develop in the 1970s, with the first Takaful company established in Sudan in 1979.
In the UK, the Takaful market is still developing, with limited providers offering fully Shariah-compliant protection solutions. GPOD Wealth works with leading Takaful providers and Shariah scholars to bring these ethical protection options to our clients.
Core Principles of Takaful
1. Mutual Cooperation (Ta'awun)
Participants cooperate to provide financial security against defined risks by contributing to a common fund. Each participant agrees to help others in the group while also receiving coverage for themselves.
2. Donation (Tabarru')
Contributions are made as a donation to help those in need within the group. This donation concept eliminates the elements of gambling and uncertainty, as participants contribute willingly to help others.
3. Shared Responsibility
Risks are shared collectively among all participants rather than transferred to an insurance company. This creates a system of mutual indemnification rather than a profit-making venture for a third party.
4. Prohibition of Riba (Interest)
Takaful funds are invested only in Shariah-compliant assets that avoid interest-based instruments. This ensures that all aspects of the protection plan remain halal.
5. Prohibition of Gharar (Uncertainty)
The Takaful model reduces excessive uncertainty by clearly defining how contributions are used, how claims are paid, and how any surplus is distributed.
6. Transparency and Fairness
Full disclosure of how the Takaful fund operates, including investment activities and surplus distribution, is provided to all participants.
How Takaful Differs from Conventional Insurance
| Feature | Conventional Insurance | Takaful |
|---|---|---|
| Relationship | Policyholder and insurer (buyer and seller) | Participants in mutual cooperation (shared ownership) |
| Risk Treatment | Risk transfer to insurance company | Risk sharing among participants |
| Funds Ownership | Insurance company owns the funds | Participants own the Takaful fund |
| Investments | No restrictions on investments | Only Shariah-compliant investments |
| Profit Motive | Company profits from underwriting gains | Operator earns management fee, surplus returned to participants |
| Oversight | Government regulators | Government regulators + Shariah board |
Takaful Models
There are several operational models for Takaful, each with variations in how the funds are managed and how the operator is compensated:
Wakalah Model (Agency)
The Takaful operator acts as an agent (wakeel) managing the fund on behalf of participants for a predetermined fee. Any surplus from the fund belongs to the participants.
Mudarabah Model (Profit-Sharing)
The operator manages the fund as an entrepreneur (mudarib) while participants provide the capital as investors (rab al-mal). Profits from investments are shared between participants and the operator according to a pre-agreed ratio.
Hybrid Model
Combines aspects of both Wakalah and Mudarabah. The operator receives an agency fee for managing the operations and a share of investment profits.
Waqf Model
Contributions are donated to a charitable trust (waqf) which then provides protection to participants. This model is particularly popular in some regions as it emphasizes the charitable aspect of Takaful.
Our Protection Plans
Our Takaful protection plans offer ethical alternatives to conventional insurance, designed to safeguard what matters most to you and your family while adhering to Islamic principles.
Family Protection
Our Family Protection Plan provides financial security for your loved ones in the event of your death, offering peace of mind that they will be taken care of according to Islamic principles.
- Similar to life insurance but structured as mutual aid
- Coverage from ÂŖ25,000 to ÂŖ500,000
- No interest or gambling elements
- Surplus distributed to participants or charity
Based on a 30-year-old non-smoker for ÂŖ100,000 coverage
How This Plan Works
The Family Protection Plan operates on the Wakalah model, where your contributions are allocated to a communal Takaful fund. A portion of your contribution (typically 80-90%) goes to the risk pool used to pay claims, while the remainder covers administrative costs and the Wakalah fee.
If the unfortunate happens and you pass away during the coverage period, your nominated beneficiaries receive the protection amount. Any surplus in the Takaful fund at the end of the year is either distributed back to participants, carried forward to reduce future contributions, or donated to charity, depending on your preference.
Coverage Details
- Death benefit payments of ÂŖ25,000 to ÂŖ500,000
- Terminal illness benefit included
- Option to add critical illness coverage
- Funeral expenses advance payment
- Bereavement counseling services for family
- Shariah-compliant investment of contributions
Eligibility Requirements
- UK residents aged 18-65
- Medical questionnaire required
- Full medical underwriting for coverage over ÂŖ250,000
- No alcohol or tobacco consumption declaration
- Both Muslims and non-Muslims eligible
Term Options
- Fixed terms: 5, 10, 15, 20, 25, or 30 years
- Coverage to specific age (e.g., until retirement)
- Level or decreasing coverage options
- Renewable term options available
Case Study: Ahmed's Family Security
Ahmed, a 35-year-old IT professional, took out a ÂŖ250,000 Family Protection Plan with GPOD Wealth for a 20-year term at ÂŖ28.50 per month. Three years later, Ahmed passed away unexpectedly. His family received the full ÂŖ250,000, which helped pay off their mortgage, cover educational expenses for his children, and provide financial stability during a difficult time.
The claim was processed within 10 working days, and the funds were distributed according to Ahmed's nominated beneficiaries, ensuring compliance with both UK law and Islamic inheritance principles.
Shariah Compliance
Our Family Protection Plan has been reviewed and approved by our Shariah Supervisory Board, comprised of respected scholars including Sheikh Dr. Mahmoud El-Gamal and Sheikh Dr. Mohammad Akram Laldin. They ensure all aspects of the planâfrom the contract structure to the investment of contributionsâadhere to Islamic principles.
How to Apply
Applying for the Family Protection Plan is straightforward. You can begin online, by phone, or by scheduling an appointment with one of our advisors. The process typically involves:
- Initial consultation to determine your needs
- Completing an application form
- Health questionnaire and possibly medical checks
- Review of your application
- Confirmation of coverage and first contribution payment
Income Protection
Our Income Protection Plan provides a regular income if you're unable to work due to illness or injury, ensuring financial stability during difficult times while adhering to Islamic principles.
- Ethical coverage for illness or disability
- Up to 70% of your income protected
- Shariah-compliant structure
- Options for short or long-term coverage
Based on a 30-year-old office worker with 3-month waiting period
How This Plan Works
Our Income Protection Plan is structured using a hybrid Takaful model, combining elements of Wakalah and Mudarabah. Your contributions join a collective pool designed to provide financial support when participants are unable to work due to illness or injury.
If you cannot work due to a covered illness or injury, you'll receive monthly payments representing up to 70% of your pre-disability income after your chosen waiting period. These payments continue until you recover, reach retirement age, or the maximum benefit period ends.
Coverage Details
- Monthly benefit of up to 70% of your gross income
- Coverage for both physical and mental health conditions
- Rehabilitation support services
- Proportional benefits for partial disability
- Back-to-work incentives
- Inflation protection options
Waiting Period Options
You can choose a waiting period that best suits your needs and circumstances:
- 1 month waiting period (higher contributions)
- 3 months waiting period (standard option)
- 6 months waiting period (reduced contributions)
- 12 months waiting period (lowest contributions)
The waiting period is the time between when you become unable to work and when benefit payments begin. Longer waiting periods typically result in lower monthly contributions.
Benefit Period Options
- 2 years benefit period
- 5 years benefit period
- Until age 60
- Until age 65 (standard retirement age)
- Until age 70 (for those planning later retirement)
Occupation Categories
Contributions vary based on your occupation's risk level:
- Professional: Office-based roles with minimal physical requirements
- White Collar: Primarily administrative roles with some light physical activity
- Light Manual: Roles involving some manual work but limited heavy lifting
- Manual: Roles involving regular physical labor
- Heavy Manual: Occupations involving significant physical demands
Some high-risk occupations may have limited coverage options or exclusions.
Case Study: Sarah's Recovery Journey
Sarah, a 42-year-old dental hygienist, had an Income Protection Plan with GPOD Wealth that covered 65% of her income with a 3-month waiting period until age 65. After being diagnosed with a serious condition requiring surgery and extended recovery, Sarah became unable to work.
After the 3-month waiting period, Sarah began receiving monthly payments of ÂŖ1,950, representing 65% of her pre-disability income. The plan continued to provide this support for 14 months until she fully recovered and returned to work. During this time, Sarah also received rehabilitation support that helped with her professional reintegration.
Key Exclusions
While our Income Protection Plan offers comprehensive coverage, there are some standard exclusions you should be aware of:
- Pre-existing conditions (unless disclosed and accepted)
- Self-inflicted injuries
- Conditions arising from alcohol or drug abuse
- Normal pregnancy (complications may be covered)
- Participation in hazardous activities (unless disclosed and accepted)
Community Circle Protection
Our Community Circle Protection revives the traditional Islamic concept of community support, creating modern protection circles where members contribute to provide financial assistance when a member passes away.
- Based on traditional death committee models
- Community-based mutual protection
- Guaranteed payouts to beneficiaries
- Transparent contributions and distributions
Based on standard membership in a 500-person circle
How Community Circles Work
Community Circle Protection is inspired by the traditional concept of "funeral committees" found in many Muslim communities worldwide. We've modernized this concept to create a structured, transparent, and Shariah-compliant protection system.
Members join a protection circle of 100-500 individuals. Each member makes a small monthly contribution to the circle's fund. When a member passes away, their nominated beneficiaries receive a fixed payout from the collective fund, providing immediate financial relief during a difficult time.
Circle Structures
We offer several circle options to accommodate different needs:
- Standard Circle (500 members): ÂŖ5/month contribution, ÂŖ10,000 payout
- Enhanced Circle (350 members): ÂŖ10/month contribution, ÂŖ20,000 payout
- Premium Circle (200 members): ÂŖ15/month contribution, ÂŖ35,000 payout
- Elite Circle (100 members): ÂŖ25/month contribution, ÂŖ50,000 payout
Key Features
- No medical underwriting required
- Guaranteed acceptance for members aged 18-70
- Immediate coverage after first contribution (no waiting period)
- Fixed monthly contributions that don't increase with age
- Simple nomination process for beneficiaries
- Complete transparency of fund management
- Optional additional services like funeral arrangement support
Circle Governance
Each Community Circle operates with clear governance structures:
- Regular reporting of fund status to all members
- Member representatives can participate in oversight committees
- Annual review of contribution levels to ensure sustainability
- Independent Shariah review of all operations
- Transparent administrative fee structure (10% of contributions)
Case Study: The Rahman Family's Experience
Mohammed Rahman joined the Enhanced Circle in 2020, contributing ÂŖ10 monthly. When he unexpectedly passed away in 2023, his family received the ÂŖ20,000 payout within 5 working days of submitting the death certificate. This allowed them to cover funeral expenses and provide immediate financial support.
"The Community Circle worked exactly as promised," said his wife Fatima. "The process was dignified, quick, and free from complicated paperwork. Knowing the money came from a community of people helping each other made it feel more in line with our values."
Limitations and Exclusions
While the Community Circle Protection has minimal exclusions, there are a few important limitations:
- Suicide is excluded in the first 12 months of membership
- Death resulting from illegal activities is not covered
- Members must maintain their monthly contributions to remain protected
Health Emergency Fund
Our Health Emergency Fund provides financial support for medical expenses, allowing you to access quality healthcare when needed without compromising your Islamic values.
- Collective contribution for medical emergencies
- Coverage for hospital stays and treatments
- No interest-based elements
- Affordable monthly contributions
Based on individual coverage for core benefits
How This Plan Works
The Health Emergency Fund operates on a pure Takaful model where participants contribute to a collective pool dedicated to covering medical expenses. When a participant requires medical treatment, funds are drawn from this pool to cover eligible expenses according to the chosen coverage level.
This plan provides an ethical alternative to conventional health insurance by eliminating interest and excessive uncertainty while focusing on mutual assistance and community support.
Coverage Levels
We offer several coverage tiers to suit different needs and budgets:
-
Essential Plan: ÂŖ20/month - ÂŖ10,000 annual limit
- Inpatient hospital treatment
- Day-patient surgery
- Cancer treatment (limited coverage)
- Emergency care
-
Standard Plan: ÂŖ35/month - ÂŖ25,000 annual limit
- All Essential Plan benefits
- Enhanced cancer coverage
- Specialist consultations
- Diagnostic tests and scans
- Limited outpatient therapy
-
Comprehensive Plan: ÂŖ50/month - ÂŖ50,000 annual limit
- All Standard Plan benefits
- Comprehensive cancer coverage
- Extended outpatient therapy
- Mental health support
- Alternative therapies (when medically necessary)
- Maternity complications
Key Features
- Direct billing with participating hospitals
- Quick pre-authorization process
- No lifetime limits on coverage
- Immediate emergency coverage after 30-day waiting period
- Family discounts available
- Digital claims submission
- 24/7 health advice helpline
Waiting Periods
Some conditions and treatments have waiting periods before coverage begins:
- General medical conditions: 30 days
- Pre-existing conditions: 2 years (if declared and accepted)
- Maternity complications: 10 months
- Dental treatments: 6 months
- No waiting period for accidents or emergencies
Case Study: Aisha's Emergency Surgery
Aisha, a 38-year-old teacher, had the Comprehensive Plan through GPOD Wealth when she needed emergency gallbladder surgery. The total cost of the procedure and hospital stay came to ÂŖ12,400.
Aisha's Health Emergency Fund covered the entire cost through direct billing with the hospital. She only needed to present her membership card at admission, and all arrangements were handled directly between GPOD Wealth and the hospital. After recovery, Aisha received a detailed breakdown of the covered expenses and confirmation that her annual limit still had ÂŖ37,600 remaining for any other medical needs that year.
Our Hospital Network
The Health Emergency Fund provides access to over 300 private hospitals and medical facilities across the UK, including:
- Major hospital groups like BMI Healthcare, Spire Hospitals, and Nuffield Health
- Specialized cancer treatment centers
- Leading diagnostic facilities
- Rehab and therapy centers
Takaful in the UK Market
The UK Takaful market is still in its early stages compared to conventional insurance, but it's showing promising growth potential with a growing Muslim population of over 3 million and increasing interest in ethical financial solutions from the broader community.
Current Landscape
At present, the UK has limited providers offering fully Shariah-compliant Takaful solutions. NDI Takaful, the UK's first fully Shariah-compliant insurance broker, is at the forefront of this emerging sector, working to develop suitable protection solutions for the Muslim community.
The Islamic Insurance Association of London (IIAL) is also playing a crucial role in developing standards and advocating for the growth of Takaful in the UK. As awareness increases and demand grows, we expect to see more Takaful options becoming available in the coming years.
GPOD Wealth's Approach
At GPOD Wealth, we work with leading Takaful providers and Shariah scholars to bring ethical protection solutions to our clients. We collaborate with NDI Takaful to offer specialized protection plans and supplement these offerings with our own community-based protection solutions.
Our protection plans are designed to bridge the gap in the UK market while maintaining strict adherence to Islamic principles. We continuously monitor the global Takaful market for innovations and best practices that we can bring to our UK clients.
Challenges and Solutions
Challenge: Limited Provider Options
Solution: GPOD Wealth develops partnerships with international Takaful operators to bring their expertise to the UK market while also creating innovative protection solutions that can operate within the current regulatory framework.
Challenge: Regulatory Framework
Solution: We work closely with UK regulators to ensure our products meet all financial regulations while maintaining Shariah compliance. Our legal and Shariah teams collaborate to develop structures that satisfy both sets of requirements.
Challenge: Limited Consumer Awareness
Solution: GPOD Wealth conducts regular educational workshops, webinars, and community outreach programs to increase awareness about Takaful and its benefits. We also provide comprehensive educational materials to help clients understand how Takaful differs from conventional insurance.
Challenge: Scale and Risk Pooling
Solution: To address the challenge of building sufficiently large risk pools, we employ a combination of community-based models and strategic retakaful (Islamic reinsurance) arrangements to ensure financial stability and protection for all participants.
Looking Ahead
The future of Takaful in the UK looks promising, with several developments on the horizon:
- Increasing interest from mainstream insurers in offering Takaful windows
- Growing awareness and demand from UK Muslims for ethical protection options
- Potential regulatory adjustments to better accommodate Takaful structures
- Digital innovation making Takaful more accessible to wider audiences
- Growing interest in ethical alternatives from non-Muslim consumers
"The UK Takaful market represents an exciting opportunity for growth and innovation. As one of the world's leading financial centers with a significant Muslim population, the UK is well-positioned to become a Western hub for Islamic insurance. At GPOD Wealth, we're committed to being at the forefront of this development, bringing ethical protection solutions to our clients while maintaining the highest standards of Shariah compliance and financial rigor."
Dr. Mahmoud Hassan
Head of Takaful Services, GPOD Wealth
How Our Takaful Plans Work
Understanding the operational framework of our Takaful protection plans will help you appreciate how they differ from conventional insurance while providing similar or better security.
The Takaful Structure
Participant Contributions
You make regular contributions (similar to premiums) to the Takaful fund. A portion of this contribution is considered a donation (tabarru') to help others in need, while the remainder covers administrative costs.
Fund Segregation
Contributions are segregated into two accounts: the Participant's Account (PA) and the Participant's Special Account (PSA) or Tabarru' Account. The PA portion belongs to the participant, while the PSA is specifically for paying claims.
Ethical Investment
Funds are invested exclusively in Shariah-compliant assets, avoiding industries like alcohol, gambling, conventional banking, pork products, and other prohibited sectors. Investment returns are added back to the fund.
Claims Payment
When a participant faces a covered event (death, illness, etc.), they receive financial support from the collective fund. This payment comes from the Participant's Special Account (PSA), which holds the tabarru' (donation) portions.
Surplus Distribution
If there's a surplus in the fund at the end of the financial period (after paying all claims and expenses), it can be:
- Distributed back to participants who haven't made claims
- Kept as a reserve for future claims
- Donated to charity
- Used to reduce future contributions
The specific method of surplus distribution is clearly defined in your Takaful agreement.
Operator's Role
GPOD Wealth, as the Takaful operator, does not "sell insurance" in the conventional sense. Instead, we:
Manage the Takaful Fund
We administer the fund, process contributions, and handle claims on behalf of participants. For this service, we receive a predetermined fee (Wakalah fee) and/or a share of investment profits (Mudarabah).
Ensure Shariah Compliance
We maintain a Shariah Supervisory Board that reviews all aspects of our operation to ensure adherence to Islamic principles. This board consists of qualified scholars who provide ongoing guidance.
Invest Funds Ethically
We invest the Takaful fund in Shariah-compliant assets that avoid interest (riba), excessive uncertainty (gharar), and prohibited industries. Our investment strategy aims to generate stable returns while preserving capital.
Provide Transparency
We maintain complete transparency about fund management, investment activities, administrative expenses, and surplus distribution. Participants receive regular reports on the fund's performance.
Key Differences from Conventional Insurance
| Aspect | Conventional Insurance | GPOD Takaful Protection |
|---|---|---|
| Business Model | Risk transfer for profit | Risk sharing among participants |
| Customer Position | Policyholder (customer) | Participant (member and beneficiary) |
| Fund Ownership | Insurance company owns the fund | Participants collectively own the fund |
| Payment Structure | Premium (price for protection) | Contribution (donation + investment) |
| Investment Strategy | No restrictions, often includes interest-based assets | Shariah-compliant investments only |
| Profit Mechanism | Profits go to shareholders | Surplus distributed to participants or charity |
| Contract Type | Sale/purchase contract with insurer | Mutual contribution agreement among participants |
| Risk of Gharar (Uncertainty) | High (uncertain exchange of values) | Minimized through donation structure |
Protection Calculator
Use our calculator to estimate your protection needs and get an indication of recommended coverage amounts and potential monthly contributions.
Your Estimated Contribution
Frequently Asked Questions
Find answers to common questions about our Takaful protection plans.
Takaful differs from conventional insurance in several key ways:
- It's based on mutual cooperation rather than risk transfer
- Participants own the fund rather than the insurance company
- Contributions are considered donations rather than premiums
- Investments are strictly Shariah-compliant
- Any surplus is returned to participants or donated to charity
- It eliminates the prohibited elements of riba (interest), gharar (excessive uncertainty), and maysir (gambling)
Yes, all our protection plans are fully Shariah-compliant. They are developed under the guidance of our Shariah Supervisory Board, which includes renowned scholars specializing in Islamic finance. The board reviews and approves all aspects of our plans, from contract structure to investment strategies, to ensure complete adherence to Islamic principles.
We also undergo regular Shariah audits to verify ongoing compliance, and we provide complete transparency on how funds are managed and invested.
Absolutely! Our Takaful protection plans are open to everyone, regardless of religious affiliation. While they're designed according to Islamic principles, they offer ethical benefits that appeal to many non-Muslims as well, such as:
- Transparent fee structures
- Ethical investment policies
- Community-based approach to protection
- Potential for surplus returns
- Avoidance of industries many consider harmful (weapons, tobacco, etc.)
We welcome everyone who shares our values of mutual cooperation and ethical financial practices.
Our claims process is designed to be straightforward and efficient:
- Notify us: Contact our claims team by phone, email, or through your online account
- Submit documentation: Provide the necessary documents (varies by plan type)
- Assessment: Our team reviews your claim against the plan terms
- Decision: We aim to provide a decision within 5-10 working days for most claims
- Payment: Approved claims are processed promptly
Throughout the process, you'll have a dedicated claims handler who will keep you informed of progress and answer any questions. For Family Protection and Community Circle claims, we prioritize quick processing to provide support when it's needed most.
If you need to cancel your protection plan, the process depends on the plan type:
- Family and Income Protection: You can cancel at any time. If you cancel within 30 days of receiving your plan documents, we'll refund any contributions paid. After 30 days, you won't receive a refund of past contributions.
- Community Circle Protection: You can leave your protection circle at any time by giving 30 days' notice. Past contributions remain in the circle fund to support other members.
- Health Emergency Fund: You can cancel with 30 days' notice. For annual payments, a pro-rata refund may be available for the unused portion.
To cancel, simply contact our customer service team. We'll confirm your cancellation in writing and provide any necessary next steps.
Surplus distribution is a unique feature of Takaful that doesn't exist in conventional insurance. It works as follows:
- At the end of the financial year, we calculate the surplus in the Takaful fund after paying all claims and expenses
- The distribution method depends on your specific plan but typically follows one of these approaches:
- Pro-rata distribution to participants who haven't made claims
- Reduction in future contributions
- Donation to charity (as per participant's instructions)
- A combination of the above
- For plans with long-term savings components, surplus may also be added to your individual participant account
The specific surplus distribution mechanism for your plan is detailed in your Takaful agreement. Our Shariah board oversees the distribution process to ensure fairness and compliance with Islamic principles.
In the unlikely event that claims exceed the available funds (creating a deficit):
- The Takaful operator (GPOD Wealth) provides an interest-free loan (Qard Hasan) to the fund to cover all claims
- This loan is repaid from future contributions and investment returns
- Participants are not required to make additional payments to cover deficits
- The operator may also adjust future contribution rates to ensure fund sustainability
This arrangement ensures that all valid claims are honored while maintaining Shariah compliance and protecting participants from unexpected additional costs.
We maintain strict ethical investment standards through several measures:
- Shariah Supervisory Board oversight of all investments
- Regular screening of investment portfolios against Islamic criteria
- Exclusion of prohibited industries (alcohol, gambling, conventional banking, tobacco, etc.)
- Financial ratio screening to avoid companies with excessive debt or interest income
- Transparency through regular reporting on investment activities
- Annual Shariah audit by independent reviewers
We provide participants with reports detailing where and how their money is invested, ensuring complete transparency and accountability.
The tax treatment of Takaful plans is generally similar to conventional insurance products in the UK:
- Family Protection payouts are typically free from income tax
- Income Protection benefits are usually taxable as they replace taxable income
- Health Emergency Fund benefits are not typically taxable
- Contributions are generally not tax-deductible for individual plans
For business owners, there may be tax advantages when providing employee protection benefits. We recommend consulting with a tax advisor for guidance specific to your situation.
Start Your Ethical Protection Journey
Taking the first step toward ethical protection for yourself and your loved ones is simple. Get in touch with our team of specialists who can guide you through the options.
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