Etiqa Term Takaful Plus explained: benefits, limits and the fine print

Etiqa Term Takaful Plus is built around a specific payment mechanism: contributions are deducted directly from the EPF member's Account 2, with no cash changing hands at all. It is the takaful counterpart to Etiqa's Term Plus product, covering the EPF member and their family under one master certificate. The details below reflect Etiqa's own published product page and disclosure sheet as at the date shown there, and can change — the disclosure sheet and master certificate, not this article, govern any actual claim.

What kind of plan this is

This is a unitised family term takaful certificate, with contributions deducted automatically from the participant's EPF account rather than paid in cash, renewed yearly for as long as EPF eligibility continues. One master certificate can cover the EPF member, their spouse and their children together.

Key benefits as published

• Lump sum of up to RM200,000 on death or total and permanent disability.
• An additional 100% of the sum covered if death or TPD is caused by an accident, effectively doubling the payout in that scenario.
• Contributions deducted automatically from the EPF account, with no separate cash payment required.
• One certificate covers the member, spouse and children.
• Sum covered starts from RM10,000, rising in units of RM5,000 up to the RM200,000 maximum.

Where the fine print matters

A few structural details matter more here than in a standard cash-paid term plan:

• Entry and coverage-end ages differ by who is covered. The EPF member and spouse can enter between 17 and 65, while children can be covered from 14 days old up to age 16. Coverage runs to age 70 for the member and spouse, or when the EPF member reaches the certificate's expiry age, whichever comes first — children's cover similarly runs to age 25 under the same condition.
• The policy is yearly renewable, tied to EPF eligibility. Because the certificate renews annually rather than being locked for a fixed term, coverage depends on the EPF member remaining eligible under the scheme each year, not on a separately paid premium schedule.
• The accidental death and TPD doubling only applies when the cause is accidental. A death or disability from illness is covered at the base sum covered; the doubled payout is specifically for an accidental cause, as defined in the master certificate.
• The sum covered moves in fixed RM5,000 increments. Buyers cannot set an arbitrary sum between the minimum and maximum; it steps up from RM10,000 in RM5,000 units to the RM200,000 ceiling.

What a buyer should check in general, beyond this product

1. Whether relying on EPF Account 2 deductions suits your broader retirement savings plan, since contributions to this certificate come directly out of savings that would otherwise stay in your EPF account and continue earning dividends.
2. How the RM200,000 maximum sum covered compares with your family's actual income replacement need, particularly if you already hold other term life or family takaful cover that this maximum would need to sit alongside.
3. What happens to the certificate if EPF eligibility changes, for example after full withdrawal at retirement age, since the product is explicitly tied to that eligibility continuing.
4. How the yearly renewable structure compares with a level-premium term plan of similar sum covered, if a fixed, predictable premium matters more to you than the EPF-deducted convenience.

None of this is a judgement on whether Etiqa Term Takaful Plus is the best or cheapest way to structure family term cover. Compare it against other term life and takaful plans at compare/my/term-life, or check your existing cover with our coverage gap check.

Talk to an advisor

Whether an EPF-linked, yearly renewable takaful certificate suits you better than a conventional level-premium term plan depends on your retirement savings plan and how much certainty you want in the premium schedule. A licensed advisor can walk through both structures side by side. Find one through our advisor directory, or ask our assistant to explain how the accidental death doubling would apply to your situation.

Sources

• Etiqa — Etiqa Term Takaful Plus
• Etiqa — Etiqa Term Takaful Plus Product Disclosure Sheet
• Etiqa — Etiqa Term Takaful Plus Master Certificate