Factors influencing selection of family takaful amongst the society in Seremban / Nor Shafika Shaari

Insurance is one of the important financial tools in the current economic development. Conventional insurance and takaful have the same purpose of providing financial security against unforeseen deaths, loss of ability, and so on. Along with the passage of time, the takaful industry in Malaysia has also grown in line with other Islamic countries and this has proven its ability to be on par with foreign countries. However, despite the developments that have taken place it is growing at a relatively slow rate. This is because the penetration rate of the takaful sector (takaful ownership among the Malaysian population) is still low. Therefore, this study was carried out with the objective to identify the factors that influence the purchase of family takaful among the community in Seremban, Negeri Sembilan. The main data type used in this study is primary data. To obtain this type of data, survey method is used through questionnaire method. Based on previous studies, there are several factors that influence the purchase of family takaful. However, in this study, the researcher used ten independent demographic variables, namely gender, marital status, age, education level, employment status, monthly income, working spouse, number of dependents, health level and health status of respondents. Furthermore, this study also examines six independent variables related to consumer attitudes such as, minus risk, will motives, savings motives, marketing strategies, views on family takaful services, and community influence on family takaful purchases. This study shows that all the independent variables used in this study significantly affect the purchase of family takaful. Based on the findings of this study, the issue of penetration of family takaful among the Malaysian community needs to be considered by insurance associations and institutions. Insurance institutions can find effective initiatives to promote family takaful. Insurance institutions can do roadshows at hospitals, shopping malls and other public areas. In conclusion, the results of this study have already added to the knowledge of researchers and it is hoped that this study will be continued by other researchers in the future.