In a takaful arrangement, policyholders contribute to a mutual fund instead of paying premiums. These contributions, considered Tabarru (donation), are pooled to form the takaful fund, which provides financial support to those in need.

​

The concept involves sharing risk, where the pool helps those who face misfortune. Each participant's contribution depends on their coverage needs and personal situation, with contracts outlining the risks and coverage duration, similar to conventional insurance policies.