Investment-Linked Takaful Plan Patronage: Evidence from Malaysia

Abstract

Investment-linked Takaful is a recent innovation introduced in Malaysia. This study focuses on Investment-linked takaful plan selection in Malaysia. We have used a self-administered questionnaire to collect data from 143 respondents from the Klang Valley area. Data collected through the survey was analyzed through descriptive statistics, correlation and regression analysis. Results indicate that fee payment and benefits play a significant role in Takaful operator selection while coverage and benefits affect the investment-linked product selection in Malaysia. This study is unique as it provides empirical evidence on the investment-linked takaful investment which is limited in supply. Results provided by this study can be useful for takaful operators in designing the most appropriate investment-linked product for attracting customers.

The Malaysian Fund Managers Perspective on the Viability of Takaful Operators Investment

“…The early paid premiums in this plan will be used to offset future risk related to the age-risk factor by building-up the fund through investment. This plan can also be sold in rider form attached to a unit-linked or traditional savings plan (Parveen et al, 2019).…”