AWARENESS AND OWNERSHIP DECISION OF TAKAFUL MEDICAL POLICY AMONG WORKING YOUTHS IN MALAYSIA

Abstract

This paper explores the demographic factors of Takaful medical policyholder and nonpolicy holders. It also attempts to investigate what awareness factors that influence ownership decision to subscribe Takaful medical policy among working youths in Malaysia. The study was conducted among 180 working youths whom aged between 18 years old to 35 years old, residing in Kedah. It attempts to profile the policyholders and compare it against the profile of non-policyholders within demographics factors (gender, marital status, income, disposal savings, profession, education level, profession sectors, age group, as well as critical illness). A Chi Square test was conducted to test whether the awareness of Takaful medical policy is related to demographic aspects. The results show that there are high significant differences (at 1%) in age groups, jobs types, jobs sectors, education level, monthly income, between policyholders and non-policy holders. Meanwhile, there is a significant difference at 5% for demographic factors such as monthly disposal income and number of family members, and 10% for marital status. Results of multivariate regression analysis indicates that the features of general information and religion compliance influence youths’ decision to subscribe to Takaful medical policy. The findings give insight to Takaful operators in terms of the profiles of policyholders and what awareness factors contributes their ownership to medical policy.