Insurance & takaful

An insurer on the bank's panel (e.g. ADNIC, Orient, AFNIC, Sukoon, Salama) from whom the borrower must choose or whose policy the bank accepts.

The legal transfer of life/property policy rights to the bank as beneficiary or loss payee, required when the customer arranges cover externally.

Transfer of the takaful policy's benefit to the financing bank as security, required before disbursal of the home finance.

The insured sum equal to the cost of fully rebuilding/replacing the property (or at minimum the outstanding loan for apartments), required by the bank.

A bank-held master policy covering all mortgage borrowers, with the bank as policyholder and beneficiary, premium passed to the customer monthly.

Collective life takaful policy arranged by the bank with a panel provider in which home finance customers are enrolled.

Collective property takaful arranged by the customer as agent of the lessor (the bank) from one of the bank's panel providers.

RAKbank's branded life takaful for home finance, contributed monthly on the reducing outstanding finance amount with tiered rates by finance size.

The periodic charge for life or property cover, typically a small monthly percentage of the outstanding loan or property value.

Mandatory cover that repays the outstanding loan on the borrower's death or permanent total disability, charged monthly on the reducing balance.

Mandatory takaful cover repaying the outstanding finance amount on the customer's death or permanent total disability, contributed monthly on the outstanding balance.

The party (the bank) named on the insurance policy to receive claim proceeds, ensuring payouts first discharge the mortgage debt.

Health assessment required for life cover on large loans (e.g. above AED 4m at RAKBANK), after which a bespoke premium is quoted.

Bank-branded group insurance (life or property) protecting the mortgage exposure, provided through partner insurers (e.g. GIG, Orient).

Covered event under life takaful (alongside death) that triggers repayment of the outstanding finance amount up to the benefit cap.

Mandatory cover on the mortgaged property against damage, charged annually on the property value (≈0.035–0.06% p.a.) and usually collected monthly.

Takaful cover protecting the financed property against fire and natural perils, charged annually on property value and typically waived during the under-construction period.

Whether life takaful covers one borrower individually or co-borrowers jointly under the same finance.

One-off takaful/insurance payment covering the full term, offered as an alternative to monthly takaful contributions.

A one-off-premium life policy that may be assigned to the bank as an alternative to the bank's internal monthly-premium group cover.

Sharia-compliant cooperative insurance in which participants donate contributions to a mutual fund that pays benefits to members suffering covered losses.

Shari'ah-compliant (cooperative) insurance and reinsurance business, enumerated in Art. 61(1)(j) of Decree-Law 6/2025 as licensed financial activities.

The amount payable from the Tabarru fund on a covered event, capped per scheme member (e.g. AED 10m death / AED 5m permanent total disability at ADIB).

The periodic amount the customer pays for takaful cover — the Islamic equivalent of an insurance premium, treated as a donation to the Tabarru fund.

The bank's blanket insurance policy under which borrowers are covered without individual certificates unless specifically requested in writing.

Eligibility conditions imposed by the takaful provider before cover starts, e.g. that the property be 100% complete.

The fee the takaful provider earns for managing the Tabarru fund as agent (wakil) of the scheme members.