Islamic Insurance (Micro-Takaful) as an effective tool for sustainable development. It contains definition of micro-takaful, global landscape of takaful, case for micro-takaful, vulnerabilities at micro-level, the takaful advantage, micro-takaful & sustainable development, why micro-takaful, micro-takaful products, case study Pakistan takaful & micro-takaful initiatives, and the way forward. Health Risks can result in unbudgeted, high expenses on medical treatment PLUS indirect costs due to loss of job/loss of income. Life Cycle Risks un-usual expense or hardship faced due to sudden death of the family’s main bread-earner,  retirement, children marriage, children education, etc.