Chapter 18
Takaful: Exploring the Fundamentals of Islamic Insurance
In This Chapter
Realizing why Muslims avoid conventional insurance products
Recognizing the principles, features, and structures of takaful
Considering the origins and growth of the Islamic insurance industry
Whether you’re a student or a retiree, a businessman or an investor, you face financial risks every day. You may go on vacation and come back to find that your house has been stripped of your most valuable possessions — or that your luggage somehow didn’t make the return trip. You may start a business with a solid plan and then watch the global economy nosedive, taking with it your ability to make your loan payments, keep up with utility bills, and pay your staff. You may crash your car, smash your finger, or lose your wedding ring. I can go on and on, but I sense your blood pressure rising already!
A broad spectrum of conventional insurance products is available to mitigate whatever fiscal risks take your blood pressure into unsafe territory. However, for Muslims, such products are generally off-limits because they involve transactions or activities that sharia (Islamic law) prohibits.
Your Muslim neighbor ...
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