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The concept of waqf-takaful involves the distribution of benefits from the death compensation of deceased takaful participants to selected religious institutions to create perpetual and continuous waqf contributions. Recently, challenges have arisen in the implementation of this waqf-takaful product, such as inconsistent and varying standards in the execution of the death compensation waqf concept, as well as weaknesses in management aspects. However, several takaful operators in Malaysia have begun to practice the activity of death compensation waqf through takaful products. Meanwhile, FWD Takaful Berhad and Yayasan Waqaf Malaysia (YWM) are two major entities with high potential to collaborate in developing this product comprehensively. This product is seen as capable of addressing challenges faced by traditional compensation models by leveraging the power of collective giving and risk-sharing inherent in the waqf and takaful frameworks. Consequently, this study is conducted to design an innovative and competitive waqf-takaful death compensation product for FWD Takaful Berhad, namely the FWD-YWM Takaful Waqf Plan (FATWA-YWM). It is a new product created to provide participants with the opportunity to engage in charitable work and earn rewards in the afterlife, especially through waqf via the representation of a strategic partner, YWM. This product is developed exclusively to further extend the benefits of waqf for the well-being of the ummah. FATWA-YWM aims to redefine the way compensation is delivered, ensuring greater financial stability and social impact for participants. Overall, this study encompasses an overview of the entire waqf-takaful plan mechanism, key features, and the potential impact of FATWA-YWM in shaping the future of Islamic finance and social welfare.