Pru Life UK has launched PRUTerm Lindungi, its first life protection plan in the Philippines that is compliant with Islamic laws.
For as low as PHP250 ($4.37) per year, beneficiaries receive coverage of PHP100,000 in death benefits. PRUTerm Lindungi has no riba (interest), no maysir (gambling), and no gharar (uncertainty), the company said in a statement last week.
Available to Filipinos aged 18 to 60, PRUTerm Lindungi is renewable yearly, offering a flexible and accessible option for more Filipinos to meet their protection needs.
Contributions go into a Shariah-compliant Tabarru’ Fund or shared fund managed by Pru Life UK, separate from its conventional business. Claims for participants will be sourced from the Tabarru’ Fund. Any unused funds, if available, will be fairly distributed, reinforcing transparency and solidarity within the community.
The name Lindungi—meaning “to protect” in Bahasa Malaysia and Indonesia—embodies the core of this initiative: protection for every faith, every Filipino, and every future.
The Insurance Commission announced in November 2024 that it had issued the country’s first takaful licences to Pru Life UK and Etiqa Life and General Assurance Philippines.
To set up its takaful operations, Pru Life UK worked with its Prudential affiliates with established takaful operations in Malaysia and Indonesia.
With around 7m Muslims residing in the Philippines, primarily in regions such as BARMM (the Bangsamoro Autonomous Region in Muslim Mindanao) and the Zamboanga Peninsula, where many remain without bank accounts or uninsured, Pru Life UK says that its takaful initiative has the potential to transform the landscape of financial services in these communities.