Faraid and Takaful Hibah are both Islamic inheritance laws, but they have some key differences.

Faraid is a religious law that dictates how a deceased person's assets should be divided among their heirs. The specific rules of Faraid vary depending on the madhhab (school of thought) of Islam that is being followed. In general, Faraid gives priority to certain categories of heirs, such as spouses, children, and parents.

Takaful Hibah is a type of Islamic life insurance that allows a person to make a gift of their Takaful benefits to a designated beneficiary. The benefits are paid out to the beneficiary tax-free, and they are not subject to the rules of Faraid.

Here is a table that summarizes the key differences between Faraid and Takaful Hibah:

Feature	Faraid	Takaful Hibah
Legal basis	Religious law	Contract law
Governing rules	Madhhab-specific	Standardized
Priority of heirs	Spouses, children, parents	Not applicable
Flexibility	Not very flexible	Very flexible

 Advantages of Takaful Hibah

•              Takaful Hibah is a more flexible way to pass on assets to loved ones.

•              Takaful Hibah benefits are not subject to inheritance tax.

•              Takaful Hibah can be used to avoid the rules of Faraid.

Disadvantages of Takaful Hibah

•              Takaful Hibah is not a religious requirement.

•              Takaful Hibah benefits may not be as large as those under Faraid.

•              Takaful Hibah may not be available in all countries.

Ultimately, the best way to pass on assets to loved ones is to consult with an Islamic financial advisor. They can help you to understand your options and to choose the solution that is right for you.