Question 1. What is "Takaful Ta'awuni"?

Answer: Takaful Taawuni is a collective effort, consistent with Sharia guidelines, by members of a group to share any harm or loss that may befall any member of the group. Takaful Taawuni emerged from an ancient practice on the Arabian peninsula of mutual cooperation and assistance among members of a tribe. The root word "Kafala" means to guarantee and Takaful (a noun) is derived from the verb "Takafala" which means committing one's self to avert the loss of somebody. "Ta'awun" means mutual assistance-helping our fellow muslims, either by aid, support or monetary help. Therefore, a Takaful system is a group of individuals who contribute collectively in order to share the harm or loss that may fall upon any member of the group.

Question 5. How does BAJ invest my contributions?

Answer: All investment instruments and funds are Shariah compliant and approved by both BAJ's Permanent Sharia Advisory Committee and Saudi Arabian Monetary Agency (SAMA). Contributions to a Takaful Taawuni Plan that consists of an investment component [such as Education Plan, Retirement Plan, Waqf Plan, etc] are directed into either an Investment Strategy or an individual Investment Fund. Clients may select from three Investment Strategies: (a) Conservative, (b) Balanced and c) Growth, that suits their long-term financial goals. Alternatively, clients may choose to place funds into one of BAJ's four equity mutual funds, or its Murabaha fund. These funds are professionally managed by either Bank Aljazira or well-respected investment managers.

Question 6. Who owns the Takaful Ta'awuni fund?

Answer: Takaful Ta'awuni fund or "pool" of funds is actually owned by the Participants who join in one of several plans on offer. Under a contractual arrangement, Bank Aljazira acts as a "Wakeel" or agent on behalf of the Participants to manage the Takaful Taawuni 'pool' and business operations. While Bank Aljazira provides both insurance, operational and investment expertise in the management of Takaful operations, Bank Aljazira does not assume any risk resulting from Takaful operations.

Question 7. How do I pay for a Takaful Ta'awuni Plan?

Answer: To initiate a Takaful Ta'awuni Plan, you may arrange for a convenient automatic payment deduction from your bank account, or pay by check. Installments for your Takaful Ta'awuni Plan may be made monthly, quarterly, semi-annually, annually or in one lump sum in order to match your financial resources.

Question 8. How does the Takaful Ta'awuni Model actually work?

Answer: A Participant's contribution is handled by Bank Aljazira in one of two ways: (A) contribution to a Participant's Individual Reserve Investment Account (IRIA) in the case of Risk-only Protection products, or (B) contribution to a Participant's Individual Investment Account (IIA) in the case of savings and investment products which also consist of a chosen level of protection. As funds are needed on a monthly basis to cover risk charges, Wakala fees and/or for investment purposes, a Participant's account is debited and monies are transferred to a Takaful Ta'awuni Account (TTA), a major portion of which is a Tabarr'u (donation), to the operator as wakala fees or to the investment funds selected by the Participant, as appropriate.

Question 9. If I need a sum of money at some point in the future for Marriage, for College Education or to retire comfortably, how can Takaful Taawuni Program help me?

Answer: There are a range of Takaful Investment Plans to assist you-Retirement Plan, Ladies Savings Plan, Marriage Savings Plan, and Capital Plan. For example, the Takaful Taawuni Retirement Plan is an ideal and convenient way to set aside savings on a regular basis which is invested long-term to assist you in achieving financial independence. Based upon your current earnings and your financial goals for retirement, a plan can be designed that includes growth for the funds committed to investment as well as risk protection for your family throughout the plan period, in the event of death or disability [God forbid].

Question 10. If I need risk protection for me and my family for a limited period, how can Takaful Taawuni help me?

Answer: There are a range of Risk-only Plans [ Level Term, Increasing Term and Decreasing Term ] to assist you with a fixed or variable level of protection in the event of death or disability that can be provided to your family or Beneficiary. Risk-only protection for a fixed term is ideally suited to match a temporary indebtedness or substantial financial obligation that can be fully paid rather than become a burden on your family. Contributions can be made on a level, an increasing or decreasing basis to match your financial resources or your risk protection requirements.

Question 11. How does Takaful Ta'awuni complement from GOSI insurance (General Organization for Social Insurance)?

Answer: GOSI is a mandatory social insurance program sponsored by the Government of Saudi Arabia which is funded by deductions from wages of expatriates and Saudi nationals. GOSI mandatory payments are 2% of gross wages for Occupational Hazards and 15% of gross wages (divided 6% for insureds and 9% for employers). GOSI's compensation relates only to injuries, illnesses or death directly linked to employment. Hence, compensation for death by natural causes is excluded. Compensation by GOSI for Occupational Hazards on the job is an allowance of 75% of monthly wages for injuries or temporary/permanent disability, and for Old-age Annuities an amount which is 2% of the average monthly wages multiplied by the number of years insured by GOSI [viz. pay in over 20 years, last average monthly salary of 10,000, then GOSI stipend per month is 4,000. When the Annuitant dies, the GOSI payments cease. The key features of each program are :

• Compensation by GOSI is geared to a person's average monthly salary. Takaful Ta'awuni Plan pays the sum assured and/or the accumulated savings as established by the Plan Holder.
• Compensation by GOSI is paid to wage earner and ends with his death. Takaful Ta'awuni Plan pays the Plan Holder at the time of Maturity or pays the heirs or Beneficiary in the event of death [god forbid] as a lump sum or continuing annuity until funds are exhausted.
• Funds contributed to Takaful Ta'awuni are owned by the Plan Holder at all times and may be directed into funds chosen by the participant.
• GOSI contributions belong to the State Authority.
• GOSI contribution is fixed and compulsory.
• GOSI is compulsory and important social insurance system operated by the govt of KSA. Takaful Ta'awuni is flexible and discretionary system which complements GOSI and provides additional benefits to its members.

Question 12. If I have a large cash balance in my bank, in addition to many real estate and other properties, what value-added could I obtain from Takaful Ta'awuni?

Answer: Takaful Ta'awuni is a long-term financial plan. Most probably a participant will live to encash the net asset value of his plan, which is value-added to your existing investment, besides the additional protection that your customized plan can provide to your family and loved ones.

Question 13. How do I join the Bank Aljazira Takaful Ta'awuni Program?

Answer: Anyone may join the Takaful Ta'awuni Program-young or adult, Saudi national or expatriate. Participation begins with completion of an Application form and submission to Bank Aljazira, or to one of our friendly Takaful Ta'awuni Financial Consultants available at the headquarters or through the Branch office. There is no special membership fee. Interested persons can contact us through many channels:

• Through your local Bank Aljazira branch
• Bank Aljazira Head Office: 651 8070 Ext.: 2007
• Toll free number 800-244-0959
• E-mail: infotakaful@baj.com.sa
• Or for more information visit us at www.baj.com.sa and www.takaful.com.sa