Investigating the understanding and subscription level of takaful among young adults in Pekan, Pahang

This research explores the level of understanding and subscription of Takaful among young adults in Pekan, Pahang, to determine the important factors influencing their subscription to Takaful products. While the performance of the Takaful industry has been growing positively in Malaysia, the subscription rate among young people is still low, especially in small-town areas like Pekan, compared to metropolitan areas. Using a quantitative methodology, data are gathered through structured Google Forms questionnaires in this research on three major aspects: the level of awareness of Takaful, the extent of subscription, and the factors affecting subscription among young adults. These findings will contribute to solving issues of low a lack of awareness of Takaful's benefits and barriers to engaging with Takaful because of misconceptions or a lack of access to information and others. Young adults, aged 20 - 34, are a critical demographic for the sustainability of Takaful since they are the future long-term subscribers whose financial literacy and risk management strategies will go a long way in either dampening or promoting growth in the industry. This research underlines the need to increase awareness, as studies have proved a strong correlation between understanding Takaful products and subscription rates. It also underscores Takaful’s role as a Shariah-compliant financial tool for risk mitigation, providing financial security and promoting inclusive finance. By focusing on Pekan’s young adults, this study aims to offer actionable insights to improve Takaful penetration rates in rural areas and support informed decision-making for a generation poised to shape the industry's future.