Product Specifications

MUSTIKA
Version 1.9

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 1.0 GENERAL INFORMATION

1.1 Introduction

1.2 Target Market

1.3 Product Proposition

1.4 Selling Proposition

Please refer the Brand Alignment Paper for the above information.

2.0 PRODUCT INFORMATION

2.1 Marketing Name

MUSTIKA

2.2 Distribution Channel

Agency

2.3 Product Overview

This is a 6- year Limited pay Endowment plan with 20 years coverage for Life and TPD.

The plan comes with Annual Cash Payment for the first 10 Certificate years with the
following percentage:

Cash Payment
Certificate Year (% of Annual
Contribution)
1 10%
2 – 10 years 6%

2.4 Basis of Contract

This plan applies Tabarru' concept, whereby the Participant agree to donate or contribute
a specified portion from the contribution paid to the Participant Special Account (Tabarru'
Fund) for the purpose of mutual aid and assistance to the Participant in case of need.

Any surplus arising from Tabarru’ Fund (PSA) for this plan at the end of each financial year
will be distributed on 20:80 basis between Takaful Operator and the Participant. Takaful
Operator receives 20% of surplus as an incentive for operating and for being responsible
for the management of Tabarru’ Fund. The balance of 80% will be accumulated and
payable to the Participant upon maturity.

PA Mudharabah
This plan also applies Mudharabah concept, whereby the Participant (act as capital
provider) provides the contribution to the Takaful Operator (acts as entrepreneur) to
manage the Takaful PA Fund. If the Fund is profitable, the profit will be shared based on
an 90%:10% basis between Participant and Takaful Operator, respectively.

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 2.5 Description of Benefit

2.5.1 Death (all causes)

Upon Death of the participant during the coverage period due to Natural
or Accidental causes, total of Sum Covered (SC) is payable in one lump
sum. The amount payable is equivalent to the amount of SC plus
accumulated value in Participant’s Account (SC + PA Fund)

2.5.2 Total Permanent Disability (TPD) (all causes)

In the event of TPD due to Natural or Accidental causes before age 65
years old, the Sum Covered (benefit) will be payable in one lump sum,
subject to RM 1 million per life limit. The amount payable is equivalent to
the amount of SC plus the accumulated value in Participant’s Account
(SC + PA Fund).

Note:
• Total TPD coverage subject to a cap of RM2million
• No TPD benefit shall be payable after age 65 years old.
• The contract shall terminate immediately after the TPD payment.
• For Sum Covered more than RM1 million, the remaining sum
covered will be payable ONE year later (after the first payment) in
one lump sum.

2.5.3 Terminal Illness Benefits

Upon diagnosis of the Terminal Illness during the coverage period, total
of Sum Covered (SC) is payable in one lump sum. The amount payable
is equivalent to the amount of SC plus the accumulated value in
Participant’s Account (SC + PA Fund). The contract shall terminate
immediately after the Terminal Illness payment.

Definition of Terminal Illness

The conclusive diagnosis of a condition that is expected to result in
death of the Life Participant within 12 months. The participant must no
longer be receiving active treatment other than that for pain relief. The
diagnosis must be supported by written confirmation from the
appropriate specialist and confirmed by the Company’s appointed
doctor.

2.5.4 Funeral Expense Benefit

N/A

2.5.5 Interim Cover

Accidental death only. (between contribution payment date and certificate
date).

2.5.6 Surrender Benefit

Upon early surrender, PA fund will be payable to the participant.

There is a surrender charge of RM15 per case for the first 2 contract
years..

2.5.7 Maturity Benefit

On survival of the Participant at the end of the contract, the accumulated
value in Participant’s Account plus Participant Accumulated Surplus (if
any) will be payable.

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 2.5.8 Annual Cash Payment
The annual Cash Payment is payable for the first 10 years only, with 10%
for the first year and 6% for the next 9 years (percentage of the Annual
Contribution).

For Annual Contribution Payment Mode

The annual Cash Payment is payable at the beginning of each certificate
year, within 6 weeks after the cooling off period (for first year) or after the
contribution date (subsequent years).

For other Contribution Payment Mode

The annual cash payment commences at the end of each certificate year,
subject to full contribution received for the respective certificate year.

3.0 UNDERWRITING RULES

3.1 Eligibility Rules

3.1.1 Age Definition : Age Next Birthday (ANB)

3.1.2 Person Covered : Minimum entry age: 14 days

Maximum entry age: 60 years

rd
3.1.3 3 Party Person Covered : Yes – Spouse & Child

3.1.4 Certificate Owner : Minimum entry age: 19

3.1.5 Certificate Term : 20 years

3.1.6 Maturity Age : Maximum 80 years

3.2 Period of Takaful

Fixed period of 20 years.

3.3 Sum Covered

Min Sum Covered = Subject to min annual contribution of RM6,000

Maximum Sum Covered = subject to underwriting

Refer Appendix A for the Medical Underwriting Table

3.4 Contribution Term

Regular contribution is payable for the first 6 years only.

3.5 Attachable Rider (optional)

Waiver of Contribution Rider

Term of Rider = 6 years

Maximum entry age for Waiver of Contribution Rider = 55 years old

Maximum expiry age = (55 + 6 years) = 61 years old

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 3.6 Contribution Split

Cert Year PA PSA

1 30% 70%
2 45% 55%
3 50% 50%
4 60% 40%
thereafter 65% 35%

3.7 Difference in Contribution Rating

3.7.1 Female Rates

• Female will use the same contribution rate table as Male

3.7.2 Non-Smoker Discount

• There is no non-smoker discount.

3.7.3 Large Sum Covered Discount

• N/A

3.8 Type of Collection allowed

3.8.1 Direct
• Cash
• Cheque

3.8.2 Bank
• Auto Debit
• Debit Card

3.9 Other Rules

3.9.1 Cancellation within Cooling off Period

• Cooling Off Period commences for 15 days after the delivery
date. If the Participant wishes to terminate the Certificate within
the Cooling Off Period, the Amount Payable to participant at
termination of Certificate = Total Contributions already paid under
the Certificate – Medical report (if any).

3.9.2 Exclusions
• Similar to existing terms of other individual Takaful plans and in
accordance to Shariah Guidelines.

3.9.3 Occupational/Health Loading

• Yes, subject to underwriting.

3.9.4 Exclusions

Exclusions on Death
If the Participant, while sane, commits suicide, our liability shall be limited
to the following Current Best Practice:

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 • refund of the Contribution made if suicide is committed within one (1)
year from the Issue Date or any Reinstatement Date of the
Certificate, or.
• payment of sixty percent (60%) of the Sum Covered if suicide is
committed after one (1) year from the Issue Date or any
Reinstatement Date of the Certificate.

Exclusions on TPD
The Benefit under this Endorsement shall not be payable if the Disability
occurred or was caused directly or indirectly from any of the following
causes:

1. War invasion act of foreign enemies hostilities (war be declared or

not) or civil war mutiny civil commotions assuming the proportions of
or amounting to a popular uprising insurrection rebellion military or
usurped power or any act of any person acting on behalf or in
connection with any organization actively directed toward the
overthrow of any Government or ruling body by force terrorism or
violence;

2. Suicide or attempted suicide (whether feloniously or not) or

self-inflicted injury (while sane or insane) or indulgence in alcohol
narcotics or drugs or whilst insane or by any sexually transmitted
disease;

3. Whilst engaged in flying, operating or servicing any aerial device or

aircraft for the purpose of any trade, profession or hobby or as crew
member therein or whilst engaged in parachuting or skydiving or in
any other aerial activities other than from a military or police aircraft
except as a pilot or crew member or passenger on a military or police
aircraft on its official and authorized flights or a pilot or crew member
or a fare paying passenger on a regularly scheduled flight of a
commercial airline;

4. If the Disability existed on the date of issue of the Contract or at the

date of reinstatement, whichever is the later;

5. Whilst engaged in criminal or illegal activities or arising from any

provoked assault;

6. Water skiing or any underwater activity necessitating the use of

artificial breathing apparatus;

7. Nuclear fission, nuclear weapons material or radioactive

contamination; or

8. Acquired immune deficiency syndrome (AIDS) and any AIDS related

conditions.

3.9.5 Lien

A lien will apply should Death/TPD occur before age 5 years old of the
person covered as follow:

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 Age At Percentage of Sum Covered
Death/TPD Payable
1 20
2 40
3 60
4 80
5 100

Notwithstanding the Percentage of Benefits Payable as shown in the

above proportion, this Juvenile Lien shall only be applicable to the
certificates with the total Sum Covered of above Ringgit Malaysia Two
Hundred Thousand (RM200,000) on a per life basis. There will not be
any Juvenile Lien applicable for the first Ringgit Malaysia Two Hundred
Thousand (RM200,000) Sum Covered on a per life basis.

3.9.6 Amendments/ Changes

Description Rules

Yes
Change Frequency of Contribution Effective from next due for new
frequency of contribution payment

Change of Sum Covered
Yes
Effective from next due date.
Meanwhile, for increase Basic Sum
covered (subject to underwriting), it is
allowed within 6 months and effective
from the Certificate Commencement
Date

3.9.7 Non-Forfeiture options

Description Value

Yes
Cash Surrender Value
CSV plus Participant Account (PA)

Reduced Paid-Up No

Yes
The amount in PA is used to pay for
the PSA charges in order to keep
Automatic Contribution Loan
the contract in-force, as long as the
balance in the PA is sufficient to
make such payments

4.0 AGENT COMMISSION

As per the OCC Guidelines

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 Appendix A

MEDICAL UNDERWRITING TABLE

AGE NEXT BIRTHDAY

TOTAL SUM

ASSURED (RM) 0 - 15 16 - 35 36 - 40 41 - 45 46-50 51-60 >60

Up to 100,000 A A A A A A B

100,0001 t0 200,000 A A A A A B B

200,001 to 250,000 B+I+J A A A A B B

250,001 to 400,000 B+I+J A A A B+C+D B+C+D B+C+D

400,001 to 500,000 NA A A B+C+D B+C+D B+C+D B+C+D

500,001 to 1,000,000 NA B+C+E+F B+C+D+E+F B+C+D+E+F B+C+D+E+F B+C+D+E+F B+C+E+F+G+H+I

1,000,001 to 1,500,000 NA B+C+E+F B+C+E+F+G+H+I

Above 1,500,000 NA B+C+E+F+G+H+I

A : Non-medical

B: Medical Examination

C: FEME (Fluid and microscopic examination)

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 D: Electrocardiogram (Resting) with report

E : Blood profile that includes Fasting blood lipids profile, Hepatitis B screening (Hb(e) Antigen is needed if Hb(s)Ag Positive); SGOT, SGPT and

Gamma GT, creatinine and urea, fasting blood sugar (if >normal limit, HbA1c is required), full blood count.

F : HIV Test

G : Chest X-ray with report

H : Treadmill Electrocardiogram

I : Attending Physician's Statement

J : Child Health Book

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