Takaful is a cooperative insurance system rooted in Islamic principles. It allows members to contribute money into a pooled fund, which is then used to support each other in times of need, such as illness or loss. This system emphasizes mutual assistance and shared responsibility, aligning with the ethical values of Islam. In a Takaful arrangement, participants agree to contribute a specific amount regularly. The funds are managed collectively, and any claims are paid out from this pool. This model promotes transparency and fairness, as profits are often shared among participants, distinguishing it from conventional insurance practices.