Conventional insurance operates on a risk-transfer model, where you pay a premium to an insurer that assumes your risk in exchange for that fee. Takaful is a Sharia-compliant alternative built on mutual cooperation, where participants contribute to a shared fund used to pay claims within the group, and any surplus in the fund can potentially be distributed back to participants, rather than being retained purely as insurer profit the way a conventional premium structure typically works.
Check your own exact figures with the Insurance Comparison Tool - free, in under a minute, no sign-up required.