Wednesday, January 30, 2008

PRODUCT LIFE INSURANCE Allianz Syariah - AlliSya Protection, AlliSya Invest & AlliSya Invest Plus

Allianz Syariah - AlliSya Protection, AlliSya Invest & AlliSya Invest Plus

Allianz Syariah is a life insurance product for life long coverage plus an investment scheme to meet your needs for future protection and financial planning according to the Sharia principles.

Allianz offers 3 types of products:

AlliSya Protection
-With this program you are free to choose from various payment modes which are monthly, quarterly, semi-annual or annual.

-The insurance benefits include the Sum Insured and Investment return
Freedom to decide your own premium payment period.

-You can increase with other insurance protection such as accidental benefit, critical illnesses, permanent disability etc.

AlliSya Invest
-The payment of the premium is single.
-The insurance benefit payable is either the Sum Insured or Investment Return, which one is higher.

AlliSya Invest Plus
-Single premium payment
-The insurance benefits are the Sum Insured and the Investment return
-Addition coverage : critical illness, accident and total permanent disability
-Period of Insurance coverage are 5 and 10 years, and renewable

Management of AlliSya Fund
-All or part of the premium will be allocated and calculated in unit, according to the current unit price applicable
-Investment return is calculated from the total unit after substracting all fees
-Unit price is the difference between offering price and buying price, with a difference of 5%
-Unit price could be changed from time to time depending on the fund manager and market conditions
-Unit price is calculated daily and published in the Bisnis Indonesia Daily

Type of Investment
With Unit-linked products, premiums will be allocated in units which you are free to distribute between our 3 unit-linked Funds:


> AlliSya Rupiah Cash Fund
> AlliSya Rupiah Fixed Income Fund
> AlliSya Rupiah Balanced Fund

Allianz offers four funds as your investment opportunity

AlliSya Rupiah Cash Fund
Designed to get a maximum investment return* with fund placements in Rupiah using high-quality short-term investment tools such as time deposit, SWBI, and mutual funds. This investment offers a high-level security and preserves high liquidity by providing investment return.

* Investment returns depend on company investment performance and investment risks.

AlliSya Rupiah Fixed Income Fund
Designed to get an optimum investment return* with fund placements in Rupiah using short and mid-term investment tools such Deposito, SBI, and mutual funds, as well as long-term investment tools like bonds. This investment offers attractive investment gains with high level security and stability.

* Investment returns depend on company investment performance and investment risks.

AlliSya Rupiah Balanced Fund
Designed to get a maximum investment return* with fund placements in Rupiah using an optimum allocation with money market instruments, bonds, stocks and mutual funds. The allocation of funds is determined by Fund Managers and is subject to change on occasion. This offers good long-term investment returns at high risk.

* Investment returns depend on company investment performance and investment risks.

You can add SmartRiders to your basic insurance plan

Allianz SmartRiders
Allianz understands that you need comprehensive protection. Therefore we have designed for you the Allianz SmartRiders. SmartRiders can be added to your basic unit-linked program and complete your and your partners life protections against accidents, critical illness and also medical expenses.

Critical Illness Plus (CI+)
This rider offers protection against 24 critical illnesses. If you are for the first time diagnosed to have one or more of these 24 critical illnesses Allianz will pay 100 % of your sum assured under CI+. Critical illnesses are for example heart attack, stroke, and cancer.

Accidental Death & Disablement Benefit (ADDB)
Nobody expects accidents to happen. But we all know they do happen.
This rider offers you additional coverage for death and disablement caused by accident. Allianz pays 100% - 300% of the sum assured upon accidental death and a certain percentage if inner organs or body parts are defect because of an accident.

Total Permanent Disability (TPD)
24 hours a day Allianz protects you from TPD and pays you 100% of your sum assured in case of TPD. Of course, your basic policy will still continue until the end of insurance time.

Waiver of Premium Plus (WOP+)
This rider offers an additional protection if the life insured is for the first time diagnosed to suffer from one or more of 24 critical illnesses (CI+) and/or has total permanent disability (TPD). In these cases the premium will be waived (canceled) until end of the payment term. There is no limit as to what amount of premium can been waived.

Payor Benefit & Payor Protection

Payor Benefit
Release from obligation to pay premium if a policyholder suffers from total permanent disability or from one or more of 24 critical illnesses.

Payor Protection
Release from obligation to pay premium if policyholder dies due to an accident.

Spouse Payor Benefit & Spouse Payor Protection

Spouse Payor Benefit
Release from obligation to pay premium if the spouse of a policyholder suffers from total permanent disability or from one or more of 24 critical illnesses.

Spouse Payor Protection
Release from obligation to pay premium if the spouse of policyholder dies due to an accident.

Flexi Care

We do not expect to get sick and sickness normally happens without prior notice. While you are doing your activities Allianz protects you from unexpected cash payments for hospital expenses. If the insured one gets sick or suffers an accident that must be taken care of in a hospital, Allianz pays for room expenses, surgery expenses etc. as you can see in table below during a maximum of 180 days per year.

AlliSya Product has been approved by Syariah Supervision Board as recommended by National Board of Syariah – Majelis Ulama Indonesia.

Sharia Insurance
Islamic finance has developed mainly in two directions, namely Islamic banking and Islamic insurance (Takaful or Sharia). While information about Islamic banking is widely available, little is known about the features, models and structures of Takaful, particularly in Indonesia.

All human beings are invariably exposed to the possibility of meeting catastrophes and disasters giving rise to misfortunes and sufferings such as death, loss of limbs, accident, destruction of business or wealth, etc. Notwithstanding the belief of all Muslims in Qadha-o-Qadr, Islam provides that one must find ways and means to avoid such catastrophes and disasters wherever possible, and to minimize his or his family's financial losses should such events occur. One possible solution is to buy insurance cover under the conventional system.

However, an overwhelming majority of Sharia scholars believe that conventional insurance is unlawful due to the involvement of Riba (interest), Maisir (gambling) and Gharar (uncertainty).Takaful, the Islamic alternative to insurance, is based on the concept of social solidarity, cooperation and mutual indemnification of losses of members. It is a pact amongst a group of people who agree to jointly indemnify any loss or damage that they may suffer, out of the fund they donate collectively. This Takaful contract usually involves the concepts of Mudarabah, Tabarru´ (to donate for benefit of others) and mutual sharing of losses with the overall objective of eliminating the element of uncertainty.

Takaful products are available to meet the needs of all sectors of the economy, both at individual as well as corporate levels, and to cater for the short and long term financial needs of various groups of society.

The distinction between the conventional insurance and Takaful business is most visible when looking at investment of funds. While insurance companies invest their funds in interest-based avenues and without any regard for the concept of Halal-o-Haram, Takaful companies undertake only Sharia compliant business and the profits are distributed in accordance with the pre-agreed ratios in the Takaful Agreement. Likewise they share in any surplus or loss from the pool collectively. Takaful system has a built-in mechanism to counter any over-pricing policies of the insurance companies because whatever may be the premium charged, the surplus would normally go back to the participants in proportion to their contributions.

Sharia insurance (Takaful) is a system in which all participants “donate” partially or full contributions used to pay claims filed by several participants. The role of insurer is limited to managing the fund and all administration process.

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