Takaful, also called Islamic insurance, is a system of cooperative insurance. Please note that it is not just for Muslims and is open to non-Muslims who prefer to subscribe to and receive Takaful benefits. While the ultimate safeguard provided to the insured person under a takaful insurance is similar to that provided under a conventional insurance, a takaful agreement is Sharia-compliant. You are free to choose a takaful policy for any kind of deal, however if you are availing a loan from an Islamic Bank, then it would be mandatory for you to select takaful.