Pru Life UK, a London-based international life insurance company, offers no limit on an interest-free loan it could disburse to cover a potential shortfall in a fund collected from policyholders should benefit claims exceed the pooled money.

“There’s no limit on the card. Because it’s a benevolent loan if we need to get a card from the shareholders’ fund,” Maricel Estavillo, Pru Life UK head of Takaful and vice president for sustainability, told a press briefing on Tuesday, Sept. 9

PRUTerm Lindungi, a Shari’ah-compliant term insurance product, was recently launched by the insurance firm, allowing policyholders to contribute one-time for as low as ₱250, with coverage beginning within a day of payment.

Contributions are made into a shared fund called the Tabarru’ Fund, which is 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.

According to Pru Life UK, during times when Tabarru may not be enough to cover benefit claims, it will cover the shortfall in the form of Qardh, or an interest-free loan.

Estavillo said that, given the product’s “very small” size, tapping the shareholders’ fund—the counterpart of Tabarru in conventional insurance—may be necessary if Tabarru runs out of funds in its first year of sales.

“In the first year, [tapping the conventional fund] is not a risk, but it’s a possibility—especially if you have a very small product. In terms of contribution or premium, it’s minimal, while the benefit is ₱100,000. So, it’s really a mass-like game,” Estavillo said.

PRUTerm Lindungi offers tiered one-time contributions: ₱250 for policyholders aged 18 to 40, ₱550 for those aged 41 to 49, ₱1,000 for those aged 50 to 55, and ₱1,400 for those aged 56 to 60. Death benefit claims are fixed at ₱100,000.

It can be noted that contributions are renewable only until age 59, meaning a policyholder will no longer be granted benefits in the event of death beyond 60, even if they had contributed for several years.

PRUTerm Lindungi is designed in line with Islamic principles but is open to all, regardless of religion, ethnicity, or background. This life protection is structured without riba (interest), maysir (gambling), and gharar (excessive uncertainty), ensuring it aligns with Shari’ah.

Of the total funds raised within a covered year, 55 percent will be used to pay death benefits, while 45 percent will serve as fees to Pru Life UK to be used for the management of Tabarru’ fund and administrative activities.

Estavillo said the Tabarru’ fund has to be invested in instruments that are also Shari’ah-compliant such as Sukuk bonds, but she noted these instruments are “a bit limited” in the Philippines.

However, Takaful guidelines indicate that Pru Life UK, as a Takaful window operator, can also invest in offshore instruments. “There is no prohibition.”

Of the seven million Muslim Filipinos, Estavillo said about two million make up the serviceable market, which is the target for PRUTerm Lindungi. She added that it may take around two to three years for Takaful to gain momentum, as this is the typical wait-and-see period for product development.

Eligible applicants interested in availing the protection must be in good health, with no serious medical conditions or treatments in the past five years aside from routine checkups. They must also have a valid GrabPay, GCash, or Visa/Mastercard/JCB credit or debit card under their name.

According to the Insurance Commission (IC), Pru Life UK currently serves over 930,000 individual policyholders and more than 85,000 insured group members, and ranks first in new business annual premium equivalent (NBAPE) as of the second quarter of 2025.