The basic goal of both the insurance and Takaful is the same.
i.e. to protect the insured from unexpected loss.
If it happens within the specified period, the insured is entitled for the loss compensation.
Takaful is different from the insurance as in case if nothing unexpected happens within the insured period, the whole amount of the paid premiums or a part of it together with the share of profits made out of cumulated paid premiums based on the principle of Al Mudhareba financing technique is paid back to the policyholders. The amount returned to the insured is subject to the profit, if any, at the end of the year and the profit is distributed in the ratio of the premiums paid.

This is purely a fair, honest and justified system. The insured is neither blackmailed due to the expected losses nor can the insurer take the opportunity to make millions overnight. Therefore, it deserves to be called a real contract of mutual cooperation. Whereas in insurance, the beneficiary of the profit is only the insurer, as in case of General and Life insurance, the insured gets a nominal percentage of the profit.