Emirates Money, the consumer finance arm of the Emirates NBD Group, and Dubai Islamic Insurance and Reinsurance (Aman) have launched a new Takaful product together with FWU Global Takaful Solutions.

Banca Takaful is a Shari'ah-compliant unit savings plan with Takaful benefits, designed to meet the needs of customers looking for Islamic financial planning solutions.

It offers two different investment strategies - equity and cash – allowing customers to choose the investment strategy best suited to their risk appetites. Customers have the freedom to tailor their investment strategies with participation of up to 100 per cent in the equity markets.

A key feature of the product is its Dynamic Protection Programme (DPP) ¬ that protects invested capital in a bear market situation. A unique investment structure built into existing equity strategy, the DPP is designed to allow for participation in the upward trends of the equity markets, whilst being protected against falling markets.

“In the current economic environment where investing in regular cash instruments offers low returns, there is increasing interest in takaful solutions that offer guaranteed earnings,” said Vikas Thapar, general manager, Emirates Money.

“The new product that we are offering in conjunction with Aman Insurance and FWU Global Takaful Solutions has been designed in response to customer requirements, and underlines our credentials as investor-centric insurance providers with tie-ups with leading insurance companies. It is also part of our effort to broaden our reach to cater to clients from all segments of the market.”

Customers interested in this product are guaranteed at least a 100 per cent of the invested capital to be redeemed at maturity, since the payout at maturity will be at a secured DPP unit price or actual market price, whichever is higher, Thapar added.

He pointed out that the DPP feature is secured by an international bank with a credit rating of A+, guaranteeing further security for a customer’s investment.

Customers are also eligible for the maturity value by applying the highest value of Net Asset Value (NAV) locked-in during the tenure of the plan, with the minimum period required being 10 years.

Furthermore, an innovative review and fixing process of protected unit prices is done on a monthly basis and all payments - in and/or out - before maturity are at unit price, with the protected unit prices being valid for all past and future contributions.

Hussein Almeeza, managing director of AMAN, said: “The launch of the Emirates NBD Takaful and Savings Programme is a significant step by Emirates Money to provide attractive financial solutions to different customer segments.”

With its design and features, the Banca Takaful Insurance programme has all the makings of a better alternative to investing in cash instruments in view of the very low returns on investments available at present, he added. – TradeArabia News Service