Family Takaful Case Study
Abstract
Family Takaful was one of the financial instrument that benefit people. However, the participant of the Family Takaful was still little. Family Takaful was one of alternative for a Muslim in getting Shariah complaint as compared to the conventional life insurance. The Muslim needs to follow the Shariah stated by Allah where all the transactions or business must be halal and clean from prohibited element. The life insurance was containing the prohibited element such as gharar (uncertainty), maisir (gambling) and riba (interest rate). Thus, a Muslim must switch to Shariah complaint transaction which more transparent and follow Islam guidance. The problem nowadays, a number of people consume the Family Takaful was lower. Thus, this research …show more content…
Therefore, this people choose to spend their income by subscribing to Family Takaful since now they are able to subcribe and pay the takaful monthly charges.
However, there is a declined on the quantity of Family Takaful demanded when the income level increases from RM 3001 until RM 4000. The quantity demanded for Family Takaful is the lowest when the income level between range RM 4001 until RM 5000 with amount of people demanded for the service below than 5 person.
This might be due to the amount of tax that they need to pay to the government since Malaysia is using regression tax in composing income tax on the people. Thus, the higher the income level of a person, the higher the amount of income tax need to be paid by that person. This is coherenced with the research conducted earlier that income tax imposed on a person will affect the quantity demanded for Family Takaful (Zuriah & Rosylin, 2008). Therefore, making that person to have less amount of income to spend on Family …show more content…
Referring to the graph above, we can see the trend that as people receive higher education in their life, the quantity demanded for theFamily Takaful also increase. The number of Family Takaful demanded is 53 person which is the highest quantity of Family Takaful demanded when the education level received by a person is at bachelor level.
The reason is because as people received higher education level, thhey tend to have higher expectation and awareness on Family Takaful which is a good expectation and therefore they want to subscribe for Family Takaful.
But again, as the education level received by a person is beyond bachelor level which is Master and other such as pHD, the amount of Family Takaful demanded begin to fall. The lowest quantity of Family Takaful demanded is 1 when the education level received is other such as pHD.
This might caused due to as people received higher education, they start to have bad expectation on Family Takaful eventhough they are aware with the existence of Family Takaful, thus prevent them from subscribing to Family Takaful plan and explained why there is a decline for the quantity demanded for Family Takaful on the graph
Family Takaful was one of the financial instrument that benefit people. However, the participant of the Family Takaful was still little. Family Takaful was one of alternative for a Muslim in getting Shariah complaint as compared to the conventional life insurance. The Muslim needs to follow the Shariah stated by Allah where all the transactions or business must be halal and clean from prohibited element. The life insurance was containing the prohibited element such as gharar (uncertainty), maisir (gambling) and riba (interest rate). Thus, a Muslim must switch to Shariah complaint transaction which more transparent and follow Islam guidance. The problem nowadays, a number of people consume the Family Takaful was lower. Thus, this research …show more content…
Therefore, this people choose to spend their income by subscribing to Family Takaful since now they are able to subcribe and pay the takaful monthly charges.
However, there is a declined on the quantity of Family Takaful demanded when the income level increases from RM 3001 until RM 4000. The quantity demanded for Family Takaful is the lowest when the income level between range RM 4001 until RM 5000 with amount of people demanded for the service below than 5 person.
This might be due to the amount of tax that they need to pay to the government since Malaysia is using regression tax in composing income tax on the people. Thus, the higher the income level of a person, the higher the amount of income tax need to be paid by that person. This is coherenced with the research conducted earlier that income tax imposed on a person will affect the quantity demanded for Family Takaful (Zuriah & Rosylin, 2008). Therefore, making that person to have less amount of income to spend on Family …show more content…
Referring to the graph above, we can see the trend that as people receive higher education in their life, the quantity demanded for theFamily Takaful also increase. The number of Family Takaful demanded is 53 person which is the highest quantity of Family Takaful demanded when the education level received by a person is at bachelor level.
The reason is because as people received higher education level, thhey tend to have higher expectation and awareness on Family Takaful which is a good expectation and therefore they want to subscribe for Family Takaful.
But again, as the education level received by a person is beyond bachelor level which is Master and other such as pHD, the amount of Family Takaful demanded begin to fall. The lowest quantity of Family Takaful demanded is 1 when the education level received is other such as pHD.
This might caused due to as people received higher education, they start to have bad expectation on Family Takaful eventhough they are aware with the existence of Family Takaful, thus prevent them from subscribing to Family Takaful plan and explained why there is a decline for the quantity demanded for Family Takaful on the graph