AL ISLAMI TAKAFUL SAVINGS & INVESTMENT PROGRAMMES WITH CAPITAL PROTECTION (DYNAMIC PROTECTION PROGRAMME)


“The relationship of the believer with another believer is like the bricks of a building, each strengthens the other.”
Hadith Sharif, narrated by Al-Bukhari and Muslim

At Dubai Islamic Bank, it is our endeavour to bring you a host of world class products which are in compliance with your beliefs. Takaful Savings Programmes combine savings and investment plans that offer you peace of mind and take care of the future of your loved ones with a provision for the payment of Takaful benefits to your beneficiaries or heirs, in the unfortunate event of your death.

As an individual you have many dreams…

  • A day when your child graduates from a prestigious university
  • A day when your child gets married
  • A day when you relax in the comfort of your dream home
  • A day when you start leading a retired life with enough savings to take care of you and your family

There’s nothing better than the Al Islami Takaful Savings and Investment Programmes to plan a happy future based on your savings capacity. These programmes offer you a range of investment options to suit your risk profile, with flexible payment options starting from monthly contributions to a one time lump sum contribution and period of your choice.

How does Takaful work?
Takaful offers two benefits – Savings and Protection. In a Takaful plan, a portion of your contribution (Tabarru’at’) that you wish to save goes into a solidarity fund. Contributors to the fund agree to share defined financial losses to be paid out of defined financial resources. This is for the common good of the people participating in the programme with the aim of diminishing and spreading serious losses resulting from certain adverse events. The other portion which is the savings portion, is invested in Sharia-compliant funds to offer you attractive returns. In brief, the programmes provide you with a completely Sharia compliant alternative to conventional life insurance, so you don’t have to compromise your principles.

Al Islami Takaful & Savings Programme with Regular Contribution

Main Features:

  • You make regular contributions to the programme. While a small portion of your contribution (Tabarru’at’) goes to a solidarity ‘Takaful’ fund, the remainder is invested in one of the two Sharia-compliant strategies - Cash or Equity with 100% investment protection option (Dynamic Protection Programme).
  • You can choose the term of your plan (from 7 to 30 years).
  • You can start with a minimum investment of AED 300 per month. You have the flexibility to increase or decrease your contributions whenever you want and even defer your contributions for up to 12 months. Contributions can be made monthly or annually based on the minimum amount.
  • The policies are approved instantly and certificates issued on the spot.
  • No medical examination is required - all you need to do is fill in a simple health declaration for most cases.
  • You are automatically covered by a supplementary Takaful benefit in case of death between the time of issuing the certificate and the contract start date. The amount is equal to the Takaful Benefits payable upon death at the contract start date.
  • The minimum balance fee on your Dubai Islamic Bank Savings/Current account will be waived provided the contributions are successfully paid from that account during the month.
  • You can benefit from the Dynamic Protection Programme (DPP) which provides 100% investment protection at maturity (minimum 10 years).
  • You can choose from two Sharia-compliant investment strategies that best suit your unique personal risk profile:
    • Cash Strategies:
      • Invests in Islamic Bonds (Sukuk), Murabaha investments and other Sharia-compliant Money Market equivalents.
    • Equity Strategies:
      • Invests in Sharia-compliant securities and Islamic Mutual Funds.
    These two professionally-managed mechanisms offer your contribution an easy and convenient way to grow.
  • You have the flexibility to switch between investment options at any time, make partial withdrawals and early encashments or even continue your investment plan after maturity.
  • Annual solidarity ‘Takaful’ fund surpluses are distributed among all participants, proportionate to their contribution.
  • You can appoint up to four beneficiaries (with the option to change them throughout the term of the investment).

Al Islami Takaful & Investment Programme

Main Features:

  • You make a lump sum contribution to the programme. While a small portion of your contribution (Tabarru’at’) goes to a solidarity ‘Takaful’ fund, the remainder is invested in one of the two Sharia - compliant investment strategies - Cash or Equity.
  • You can choose the term of your plan (from 3 to 30 years).
  • You can start with a minimum investment of AED 25,000 lumpsum. You have the flexibility to increase your contributions whenever you want through additional lumpsum payments.
  • The policies are approved instantly and certificates issued on the spot.
  • No medical examination is required - all you need to do is fill in a simple health declaration for most cases.
  • You are automatically covered by a supplementary Takaful benefit in case of death between the time of issuing the certificate and the contract start date. The amount is equal to the Takaful Benefits payable upon death at the contract start date.
  • The minimum balance fee on your Dubai Islamic Bank Savings/Current account will be waived provided the contributions are successfully paid from that account.
  • You can choose from two Sharia-compliant investment strategies that best suit your unique personal risk profile:
    • Cash Strategies:

      • Invests in Islamic Bonds (Sukuk), Murabaha investments and other Sharia-compliant Money Market equivalents.
    • Equity Strategies:
      • Invests in Sharia-compliant securities and Islamic Mutual Funds.
    These two professionally-managed mechanisms offer your contribution an easy and convenient way to grow.
  • You have the flexibility to switch between investment options at any time, make partial withdrawals and early encashments or even continue your investment plan after maturity.
  • Annual solidarity ‘Takaful’ fund surpluses are distributed among all participants, proportionate to their contribution.
  • You can appoint up to four beneficiaries (with the option to change them throughout the term of the investment).

What is Dynamic Protection Programme (DPP)?
Dynamic Protection Programme is an investment structure built into existing equity strategies of the Al Islami Takaful & Savings Programme with regular contribution. This structure has been designed to allow for participation in the upward trends of the equity markets while offering protection from a downward movement of the markets. The investment objective of the DPP is to protect the principal investment by offering a flexible, secure and innovative participation in the equity stock market growth in full compliance with Sharia requirements. The key highlights of the DPP include:

  • At least 100% of the invested capital will be redeemed at maturity.
  • Participation in the stock market is up to 100% whereby the proven technology systematically reduces market volatility.
  • Innovative review and fixing of unit prices on a monthly basis (the programme locks in and secures capital gains of the underlying investments at monthly reference dates).
  • If, on the review date the actual unit price is higher than the latest protected price, the actual unit price becomes the new protected price.
  • Protected unit prices are valid for all investments made in the past as well as in the future.
  • Payout at maturity is at protected DPP price or actual market price whichever is higher (all payout before maturity will be at market price).
  • This structure is valid for all policies with a maturity period of minimum 10 years.
  • The DPP is already embedded as part of your regular savings plan, therefore you will benefit from it automatically (minimum 10 years).
  • DPP is applicable for Equity Strategies only.

The graph below depicts how DPP works (it does not show the future development of the strategy’s NAV)







How do I apply?
Just walk into any Dubai Islamic Bank branch and meet one of our Customer Service Officers. They will assist you on matters such as:

  • How much to save
  • The term you should choose
  • What regular contributions will help you achieve your desired maturity amount
  • Which savings mechanisms are best for you

Once you’ve made your decision, they will assist you in completing the application form, which will be processed immediately. You can walk out with a Takaful Certificate in hand, your future and the future of your loved ones taken care of.

For more information call 04 6092424 or visit your nearest Dubai Islamic Bank branch today.

Terms and conditions apply.