Takaful insurance

Takaful insurance is a type of Islamic finance-based insurance where participants contribute money into a shared pool to support each other in times of need. Unlike conventional insurance, it operates on the principles of mutual cooperation and shared responsibility, avoiding interests and uncertainty. If a member experiences a loss, the pool funds are used to provide support, and any surplus is typically redistributed or used for community benefits. This system aligns with Islamic ethical standards and promotes collective welfare and risk-sharing among participants.