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Indicators of having a micro-family takaful plan amongst low-income earners

Hafizuddin-Syah Bangaan Abdullah (Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi, Malaysia)
Rubayah Yakob (Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi, Malaysia)
Sajiah Yakob (Kuliyyah Muamalat and Management Sciences, Universiti Islam Antarabangsa Sultan Abdul Halim Mu’adzam Shah, Kuala Ketil, Malaysia)
Nuratikah Syafiqah Sharif (Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi, Malaysia)

Journal of Islamic Marketing

ISSN: 1759-0833

Article publication date: 16 July 2021

Issue publication date: 1 December 2022

610

Abstract

Purpose

Participation in micro-family takāful plans amongst low-income earners remains low despite the various initiatives promoted by the Malaysian Government. Therefore, this study aims to conduct an in-depth examination on the indicators of having micro-takaful tafakul in Malaysia.

Design/methodology/approach

Questionnaires were distributed to respondents residing in Selangor, the state with the highest recorded percentage of low-income earners in Malaysia. Regression analysis was conducted in this study. Demographic characteristics and knowledge were treated as the independent variables, whereas the tendency of having a micro-family takāful plan was considered the dependent variable.

Findings

Gender and knowledge on the benefits of micro-family takāful plans have significant and positive effects on the tendency of having a micro-family takāful plan. Married and employed women are more likely to own a micro-family takāful plan compared with their male counterparts.

Research limitations/implications

This study contributes to the growing literature on the research of micro-takāful determinants in Malaysia.

Practical implications

Industry players and regulators need to tailor the operating and marketing strategies of micro-family takāful plans based on the gender and knowledge of potential participants. The industry may also improve the features of takāful plans to ensure that they are even more attractive and comprehensive.

Originality/value

This study offers a much deeper analysis compared with past research owing to the identified dimensions of a demographic factor that can influence the tendency of having micro-family takāful plans. Besides, this study offers a comprehensive measurement of the knowledge on micro-family takāful plans by considering all aspects (i.e. concept, importance and benefit) of these plans. Moreover, this study examines the influence of each element of knowledge on the tendency of having a micro-family takāful plans, a topic that was rarely studied in the past.

Keywords

Acknowledgements

This study is funded by the Research University Grant, Universiti Kebangsaan Malaysia (GUP-2018-090).

Citation

Bangaan Abdullah, H.-S., Yakob, R., Yakob, S. and Sharif, N.S. (2022), "Indicators of having a micro-family takaful plan amongst low-income earners", Journal of Islamic Marketing, Vol. 13 No. 12, pp. 2695-2716. https://doi.org/10.1108/JIMA-05-2020-0128

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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