🛡️Life Protection Benefit

Clear answers to common questions about how the Life Protection Benefit works, who it covers, and how to qualify. So your loved ones stay protected, no surprises.

Basics

What is The LifeDAO Life Protection?

The LifeDAO Life Protection (TLD) is a community-owned, blockchain-based alternative to traditional life insurance. Inspired by the Islamic concept of Takaful — mutual risk-sharing — it provides a lump-sum payout to your beneficiaries in the event of your passing. Unlike conventional insurance, TLD is owned and governed by its members, not by a profit-driven corporation.

How does TLD differ from regular life insurance?

In traditional insurance, the company profits when fewer claims are paid — creating a tension between its interests and yours. With TLD, you are an owner. Members pool their contributions, share risk collectively, and any surplus generated is redistributed back to members. There is no commercial interest working against you.

Is TLD Shariah-compliant?

Yes. TLD is built on the principles of Ta'awun (mutual assistance) and Tabarru (voluntary contribution). It eliminates prohibited elements including Riba (interest), Maisir (gambling), Gharar (uncertainty), and Taghrir (deception). The model is fully consistent with AAOIFI Standard 26, one of the most reputable Islamic finance standards globally.

Who is TLD designed for?

TLD is for anyone who finds life insurance too expensive, inaccessible, or ethically misaligned. It is specifically designed to serve Muslims globally who lack access to Shariah-compliant life coverage, as well as anyone dissatisfied with the conventional insurance model.

Membership

How do I become a member?

You join TLD by making a financial contribution in exchange for Membership Credits. The minimum commitment is a five-year membership term. The size of your annual contribution determines how many Membership Credits you receive and the size of your potential benefit payout.

What are Membership Credits?

Membership Credits represent your ownership stake in TLD. They reflect your equity in the fund, your voting power (one credit equals one vote), and your entitlement to a share of any fund surplus. Think of them as shares in a company — except within a member-owned, non-profit structure.

Can I participate in governance decisions?

Yes. Every member can vote on proposals using their Membership Credits. TLD elects Operational Committee Contributors from among its members to screen proposals. If quorum is not reached, Committee Contributors may vote on behalf of members. This structure ensures the fund is always governed in the best interests of its members, not external parties.

Benefits & Payouts

How is my benefit payout calculated?

Instead of a fixed "sum assured," TLD uses a benefit multiplier. During underwriting, you are assigned a multiplier based on your individual risk profile — age, gender, health, occupation, and similar factors. Your annual contribution multiplied by that figure determines your payout. For example, a 45-year-old male non-smoker might receive a multiplier of 540x. At a $50 annual contribution, his benefit would be: $50 × 540 = $27,000.

Why is the benefit multiplier variable rather than fixed?

The variable multiplier is a key safeguard for the fund's long-term solvency. If more claims arise than projected, multipliers are adjusted downward across all members to maintain sustainability. If the fund performs better than expected, multipliers — and therefore payouts — increase. This approach is fairer for the entire community.

What happens to surplus funds when fewer claims are made than expected?

Any underwriting surplus belongs to TLD members, not to Takadao or any external party. Surplus is redistributed to members on demand (subject to lock-up periods), rather than waiting for a fiscal year-end — offering a more flexible and transparent approach than traditional Takaful models.

Fund & Solvency

What protects the fund in a catastrophic event?

Takadao has established a reprotection pool (rePool), funded by holders of TAKA tokens. In a catastrophic event, the rePool provides a no-interest loan to TLD to help maintain benefit payouts. TLD repays this loan from future surpluses once the fund recovers to defined thresholds.

Who owns and controls the TLD fund?

The fund is owned by TLD members and held in smart contracts controlled through multisignature (multisig) wallets managed by Committee Contributors. Takadao, as the technology provider, cannot access or move funds without member approval. Smart contracts are open-source and publicly auditable.

Technology

What is the Takadao protocol?

Takadao is the technology services provider that develops and maintains the smart contracts on which TLD operates. It includes a patented underwriting algorithm, a decentralized claims management process, and publicly auditable code. Takadao is a separate legal entity and serves TLD as a fee-based service provider only.

What are smart contracts and why do they matter?

Smart contracts are self-executing programs on the blockchain. They define and enforce the rules — automatically executing payouts, distributing surplus, and managing fund operations. They are immutable, transparent, and cannot be altered without member approval, eliminating reliance on any single authority.

Can Takadao change the smart contracts without member approval?

No. Takadao can only update smart contracts with the explicit approval of TLD members. TLD is the legal owner of its smart contracts and exercises control through multisig wallets managed by Operational Committee Contributors.

Structure

What is the difference between TLD and Takadao?

They are two completely separate legal entities. TLD is the member-owned, non-profit DAO that holds the fund and pays benefits. Takadao is a for-profit technology company that builds and maintains the smart contract infrastructure. TLD pays Takadao a protocol fee; Takadao has no ownership or controlling interest in TLD.

How does TLD differ from a traditional Takaful company?

In traditional Takaful models, a single operator manages the funds and represents both itself and participants — which can create a conflict of interest. In TLD, members are the legal owners of the fund, elect their governance committee, and have direct rights to any surplus. Takadao acts solely as a technology provider, not as an operator with competing interests.