DETERMINANTS OF FAMILY TAKAFUL DEMAND AMONG B40 HOUSEHOLDS IN MALAYSIA
DOI:
https://doi.org/10.55197/qjssh.v7si4.1585Keywords:
family takaful, low-income households, attitude, trust, perceived religiosity, MalaysiaAbstract
The takaful industry in Malaysia has expanded steadily in recent years; however, participation in Family Takaful remains relatively low among low-income households, particularly within the Bottom 40 percent (B40) income group, highlighting the need to strengthen financial protection mechanisms for financially vulnerable communities; therefore, this study aims to examine the determinants influencing Family Takaful demand among B40 households in Malaysia, with particular emphasis on behavioural and religious factors. This study employed a quantitative research design and used a structured questionnaire. It was distributed to B40 respondents residing in Dengkil, Selangor, yielding 379 valid responses. The data were analysed using the Statistical Package for the Social Sciences (SPSS). The findings reveal that all three independent variables, which include attitude, trust, and perceived religiosity, are statistically significant positive predictors of Family Takaful demand. Perceived religiosity is identified as the primary predictor, followed by attitude and trust. This indicates that religious orientation plays a central role in shaping low-income households' purchasing decisions regarding takaful financial products. Furthermore, a favourable attitude and confidence in takaful operators increase demand for takaful products among the low-income demographic. The findings offer actionable insights for takaful operators and policymakers to develop targeted product strategies, enhance consumer trust, and strengthen financial inclusion initiatives for this group. This may improve Family Takaful participation among financially vulnerable communities and strengthen their economic buffers in the event of unforeseen circumstances.
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