In this month of Ramadan, some of us are getting more enthusiastic about exploring the teachings of Islam and starting from following online studies and preaching tarawih sunah worship. In addition, to find out about sharia-based financial service products, one of which is sharia insurance. Come on, and we see the advantages of Islamic insurance.
Actually, what is Islamic insurance? Sharia insurance is a life/health protection service that uses the principle of mutual help. The basic foundation is Al-Quran and Hadith so that sharia insurance indeed does not contain elements of usury or uncertain value.
Islamic insurance uses the concept of mutual guarantee, where each participant protects the other. The idea of sharing and taking risks through a pool of funds called tabarru’ funds (donation). This concept is different from conventional insurance, where participants pay premiums to the insurance company. After that, if the risk occurs, the insurance company will bear the costs.
The basic concept of sharia insurance is very much by the culture of the Indonesian people, who like to work together to help each other. Therefore, Islamic insurance products are universal. Not limited to adherents of the Muslim religion, but can be owned by anyone.
With the principle of helping out, Islamic insurance has various advantages and benefits. Here are the advantages of sharia insurance, which can help you better understand its benefits.
1. Proportional distribution of profits
In Islamic insurance, the profit from the investment can be distributed to each participant and the manager of the Islamic insurance itself. It depends on the contract that has been agreed upon. It is different from conventional insurance, where the profit from the investment will belong to the company.
2. There is no element of usury and gharar/specious
Sharia insurance is built on Islamic law principles, so of course, it does not contain usury or anything uncertain gharar or misleading. The entire tabarru fund (donation) management is carried out transparently to optimize benefits for each participant.
3. Supervised by the Sharia Supervisory Board
All sharia insurance products are supervised by the Sharia Supervisory Board so that the management of the funds still follows the principles of Islamic law. So, you don’t need to worry that your funds will suddenly burn because the funds collected are managed transparently.
4. Based on the Quran and Hadith
It is the main foundation of Islamic insurance products. Every element, management, sales system, profit sharing uses principles according to the Quran and Hadith. You don’t need to be doubtful about uncertain interest or fees because sharia principles prioritize certainty by the contract/agreement. With all the advantages of sharia insurance above, you will better understand the difference between Islamic insurance and conventional insurance. So come on, prepare the best protection that suits your needs. You can choose a superior product from Avrist Assurance for life protection needs with sharia-based insurance, namely “Syariah Investa Optima.” This product provides life protection for up to 75 years and the benefits of sharia-based investment.
5. Can Double Claim
Unlike conventional insurance, which uses one policy for one participant, sharia insurance can use one policy for all family members. This system benefits insurance participants. First, because the contributions paid are lighter than having to pay different approaches for each family member.
The definite advantage of sharia insurance is that you can make double claims. So, you will still receive the same amount when you claim with a sum insured of IDR 10 million.
Then you can file claims at other insurance companies or other institutions such as BPJS Health. It means that you can get more money than the ceiling paid by sharia insurance.
6. No Forfeited Funds
The exciting side that is often the mainstay of Islamic insurance in attracting customers is that no funds are burned. In conventional insurance, when a customer will withdraw funds that are not due, the funds obtained will not match the amount we have saved so far. So there must be a reduction.
In the sharia insurance system, you can make disbursements at any time without having to fear that funds will be burned. According to sharia law, the customer must be the party that gets the most profit.
7. Sharia-Compliant Investments
The insurance manager or company will later invest contributions made by each participant of Islamic insurance. Then, of course, these funds are sent to investment instruments by sharia, halal, and valuable.
The types of investment are also very diverse. Usually, the contribution funds are invested in Islamic commercial banks, commercial banks with sharia branches, Islamic people’s credit banks, and baitul mal wattamwil.
In addition, it is also invested in several companies that have already been selected. These companies certainly do not sell illegal or immoral goods. All investments are made using mudharabah (venture), wakalah(agency), and wadiah (deposit) contracts.
The results obtained from investing in Islamic insurance are even higher than just conventional savings or deposits. Unquestionably lawful and by Islamic law.
8. Not Anxious When Late Payments
There are times when a customer’s financial condition experiences ups and downs or instability. This condition makes it difficult for insurance participants to pay their regular contributions. If you are a participant in conventional insurance, this condition will become a complicated problem. The premium you pay every month may be reduced because of this delay.
But you will not experience this if you become a participant in sharia insurance. Even if you are late in making a payment, your protection against funds will not change. In addition, the insurance manager will not interfere with your fund lawsuit.
Even if you think it will be long enough to pay your contributions back, you can ask for time off. Then, when your financial condition has improved, all you have to do is visit the sharia insurance office to reactivate the protection that is rightfully yours as an insurance participant.
The concept of Islamic insurance does provide more benefits than conventional insurance. However, whether using sharia insurance is according to your needs and your long-term financial plan or not, it all depends on yourself.
Advantages of sharia Insurance You Need to Know by ITI190 – Insurance Top Info 190.