hibah takaful
Money Management

Everything You Need to Know About Hibah Takaful, from a Non-Agent

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Heard about Hibah Takaful and how useful it is for yourself and your family, but not sure what it is and where to get it? You’ve come to the right place.

No guilt-tripping or sad stories about husbands not doing hibah for their wife and children here, I promise. I’m not an agent – you do or don’t do, up to you.

Let’s start 🙂

Part 1: Hibah Takaful Meaning

Hibah Takaful is the combination of two words: Hibah meaning gift and Takaful meaning the co-operative system of reimbursement or repayment in case of loss, as per Islamic or Syariah guidelines.

It’s not quite the same, but the closest equivalent of Hibah Takaful to conventional insurance is probably Life Insurance. I’ve seen some people refer to it as Takaful Life Insurance or Life Takaful as well.

Part 2: 4 Scenarios where Hibah Takaful is Useful

Rather than telling you what is included in a Hibah Takaful plan, I’m going to tell you in what situation the product is handy to have. The way I see it, Hibah Takaful is useful for four main scenarios:

  • Scenario 1 – Pay off debt after your passing
  • Scenario 2 – Generational Wealth
  • Scenario 3 – Make significant donation
  • Scenario 4 Estate planning

Let’s start one by one with,

Scenario 1 – Pay off debt after your passing

Once a Muslim dies, her/his wealth will be frozen then distributed in this exact order:

  1. Pay burial costs
  2. Pay outstanding debts (house, credit card, loans, to other people etc)
  3. Surviving spouse gets harta sepencarian (many people don’t know this)
  4. (If estate-planning documents are in place) distribute according to wishes
  5. (if no estate-planning documents) remaining wealth distributed according to faraid

Now let’s say one passes away with RM500k in wealth but have outstanding debts worth RM500k. That means the wealth distribution ends at #2, because the RM500k will be used to pay off the debt. Surviving members of the family gets nothing.

SO. It’s not a bad idea to get Hibah Takaful worth at least the outstanding debt amount so that it could be used to pay off one’s debt after passing. The rest of one’s wealth then can be distributed to loved ones.

Scenario 2 – Generational Wealth

It’s morbid to think about it, but with your death, you can change the course of life for your whole descendants.

How so? Well with Hibah Takaful, you can leave behind generational wealth even if you don’t have a lot of money/assets. Imagine with RM50 or so a month, you can leave behind hundreds of thousands of ringgit?? If you do it right, the cost of your children’s education will be secured.

(This is just my opinion, but I don’t really care about the spouse. He or she is an adult, they can find work and survive somehow. But the children… they deserve all the opportunities you can give them.)

Scenario 3 – Make significant donation

What if you don’t have children?

You can give away that amount as a significant donation or gift to your favourite charity, cause or person(s) upon your passing.

Same as Scenario 2, a small monthly sum can result in six-figure disbursements.

Scenario 4 Estate planning

If you ask me what is Hibah Takaful’s main advantage, then it has to be this: the gift money will be given directly to the person you want to give to without going through the Islamic Inheritance law system (and lengthy estate planning processes).

Basically, if you took RM250k, then the whole RM250k will be given to the exact person(s) you want. This is especially handy if,

  • If you have irresponsible male family members and want to ensure female relatives will be taken cared of
  • If you’re a Muslim convert but still want to leave behind money to non-convert family members
  • If you have adopted children, who under faraid is NOT eligible to receive inheritance

Then DEFINITELY consider this financial tool.

Further reading: How I Use Faraid Calculator to Decide Who Gets My Money After I’m Gone

Extra ‘bonuses’

This depends on the provider, but some Takaful companies in Malaysia offers Hibah Takaful products which include total and permanent disability. Let’s say you got into an accident and your spine broken. Obviously, you can’t work anymore. It’s handy to have some money then, wouldn’t you agree?

Some may also include ‘bonus’ like Badal Hajj – funds allocated to hire someone to do hajj on your behalf, after your passing. I thought that was a nice touch.

So far, everything sounds great right? It sounds like a miracle product, it covers everything! Wait wait. You should also learn what it is NOT.

Part 3: What is Hibah Takaful, and What it is Not:

#1 – Hibah Takaful is NOT the same with Hibah Harta

There are a few types of Hibah. For the purposes of this article, let’s clarify the difference between Hibah Takaful and Hibah Harta:

  • Hibah Takaful = the gift money is disbursed only upon death (or total & permanent disability; the terms vary – check with providers)
  • Hibah Harta = gifting assets you already own, such as property, car, money in bank accounts, etc.

#2 – Hibah Takaful is also NOT a Takaful Medical Card

If Hibah Takaful is the Syariah-compliant version of Life Insurance; then Takaful Medical Card is the Syariah-compliant version of (conventional) Medical Card. They may function the same way, but they are technically different products.

Btw, you should totally get Takaful Medical Card too in addition to Hibah Takaful if you can afford it. It is useful to cover hospitalisation costs. The Takaful Provider might allow it as a separate or add-on to your plan.

Related: How to Buy Your Own Damn Insurance/Takaful course.

Part 4: How much Hibah Takaful should you get

So, how much Hibah Takaful should you get? There’s no set rules, nor hibah calculator, but can use this as a guideline:

  • Amount to cover your debts, PLUS
  • Amount to leave behind to loved ones (5x to 10x annual expense is what they always say)

So let’s say you have RM100k in debt, and your family’s annual expense is RM80k per year. You should get:

  • RM100k to pay off the debt, PLUS
  • Between RM400k to RM800k for your family
  • So ideally, get between RM500k-RM900k in Hibah Takaful

Your next question may be what’s the price to get that amount?

Your Hibah Takaful quotation depends on a few factors: investment-linked or term, your age, gender, smoking status, etc. But assuming you’re in your 20s-30s, a non-smoker and got term insurance, it could be as low as under RM100 per month.

(It could also be as high as hundreds, even four-figures per month if you’re on the older side, a smoker, and got investment-linked with various add-ons)

Part 5: How to Get the Best Hibah Takaful in Malaysia for YOU

You can get Hibah Takaful through a Takaful Agent, from EPF i-Lindung (see #2), or simply buy online (most affordable option and my personal preference).

Which option to take? Well if you know a trusted Takaful agent, can get from them. You can find some contacts in the comments section.

Learn how to buy takaful

If you’ve heard one too many horror stories and want to learn about insurance/takaful first before meeting agent/purchasing your own, take my How to Buy Your Own Damn Insurance/Takaful course.

In the webinar, you will learn how to purchase the best protection that’s within your budget in 2 hours. Save you time.

Fact is, there is a LOT of context to protection products, including Hibah Takaful. The 2-hour course will help you understand what you need to know about protection products from consumer POV.

And there you have it. If you know of other options to get Hibah Takaful, especially Takaful online options, please share the info in the comments section so the rest of us can learn!

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  1. Thank you Suraya for this post! Hope this post can help the Malaysian especially your readers to get more knowledge and understanding about what is hibah takaful.

    Im Adib Khalid, a full time agent from PruBSN Takaful. If anyone of your readers looking for a plan to create hibah takaful plan, dont hesitate to whatsapp me 0127624974.

    1. Thank you Suraya. That was a splendid explaination about Hibah Takaful!

      For further info about Hibah Takaful from AIA Public Takaful and how we can enrich your life, please contact me, Qairul Amirul (Full-time AIA Advisor) at 0142272969.

  2. Good post Suraya! There’s a lot of financial tools for Malaysians to manage their finances and hibah takaful is one of them.

    My name is Aizat Syamil, a takaful consultant with PruBSN Takaful. If any of the readers would like create or understand more about hibah takaful, don’t hesitate to reach out to me here: https://beacons.ai/aizatsyamil or call / WhatsApp / message me directly at +6018-7706700 😁

  3. Hi Suraya
    I love the content on this article. Its good that we can remind people on to have safety net.
    I’m Aqilah Halim, a Takaful agent from AIA, would looking forward to assist any client on surveying plan that suits them best.
    Aqilah @ 0194554158

    Get the right plan for you, dont be under or over insured.

  4. Thank you Ms Suraya for this amazing article. I really love how easy to read your article. Btw im an agent from AIA Public Takaful so you guys looking for any takaful product from AIA can contact me @ 017-2826323 (Hannie)

  5. Thank you so much for the sharing on Hibah Takaful Suraya!

    Hi all,

    My name Taufeq and work as AIA Life Planner. Any questions or interest on AIA takaful can directly contact me at 0147296712

    Thank you!

  6. Hi Suraya,
    Great, easy to understand explanation from a lay person on Hibah Takaful. Sometimes it takes one to understand one.

    As an agent, sometimes we overestimate the public’s awareness and understanding of our products. Thanks again for the breakdown.

    I am Syaz Hamzah from AIA Public Takaful. Contact me on 013 2655199 for more info.

    1. Hello Suraya!
      Thank you so much for writing this article. People should be more aware on the importance of Hibah takaful, especially when they have small children with a single source of income.
      Anyway, I’m Iylia Zuleikha bt Iskandar. One of AIA takaful life planner. If you need further info on Hibah. Do contact me at 0133671419. I will gladly assist you. Thank you! (:

  7. Hi Suraya,

    Thanks for the article. I love your content and I’m one of the Takaful Agents from Great Eastern Takaful.

    I help people in managing financial risk through Takaful using 4 elements:

    Hibah Takaful (Death/TPD)
    Critical illness instant cash
    Personal accident
    Medical Card

    I can be contacted through WhatsApp 013-2990572, Facebook: Syafiqah Mohd Sakri
    Twitter: PikaSakri

    Thank you. 😊

  8. Thank you Suraya for this post! Hope this post can help the Malaysian especially your readers to get more knowledge and understanding about what is hibah takaful.

    Im Farhan Yusuf, a full time agent from Hong Leong MSIG Takaful. If anyone of your readers looking for a plan to create hibah takaful plan, dont hesitate to whatsapp me 0182807245

    1. Assalamualaikum, Hi Suraya!
      Thank you for sharing this excellent article that opens up those who are still in doubt about taking Hibah Takaful. With this article, I hope it can reach each of us and give more awareness on how important it is to have a Hibah Takaful nowadays.
      Assalamaualaikum, Hi; Saya Shim, Life Planner anda ☺️ Let me help you protect you, your health and your income for you to protect your family. Together we make a different in your life.

  9. Great Eastern Takaful advisor here! If you already have a policy, i’d be happy to share what we have to offer too. Hibah 250k could be as low as RM60 depending on your age, gender and smoking status ☺️

  10. Get an unbiased advisory on takaful planning from FAR (Financial Adviser Representative). Currently, FAR able to advice and compare from 8 takaful provider; HLMT, AIA, GETB, PruBSN, Zurich, Etiqa, Takaful Ikhlas, Syarikat Takaful Malaysia.

    We can access all the takaful above.


  11. Tak handsome takpe, janji ada Takaful. Kalau nak Takaful Advisor handsome, call me Rizal Sarbini from AIA PUBLIC TAKAFUL BERHAD. 0122136764

    1. Thank You Suraya berkongsi info berkaitan Hibah Takaful.
      Saya Nadiah (AIA PUBLIC TAKAFUL) nak berikan hadiah kepada yang tersayang dengan Hibah Takaful serendah RM 30.00 boleh hubungi saya.


  12. Thank you Suraya. I’ve been following you for quite some time, and now I’m a takaful agent myself. Looking to further my career in this financial industry.

    My name is Arap, AIA Life planner based in Seremban. Anyone have question regarding financial planning can contact me.


  13. Great infos, thank you Suraya !

    Hi, I’m Faiqah , BNM Approved Financial Adviser (FAR) currently I have access to 8 takaful companies ( AIA,Prudential, Great Eastern, Takaful Ikhlas, Etiqa, Zurich, Takaful Malaysia, Hong Leong Msig Takaful)

    This allow me to give unbiased advisory, so you can get the best products that fits YOUR NEEDS.

    Come let me help you 🙂


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