Viability of Islamic Health Protection Retirement Plan (i-HPRP) Among Malaysian Public and Private Employees

Abstract

Purpose ― The main objective of this research is to examine the viability of the proposed Islamic health protection retirement plan (i-HPRP) among public and private employees in terms of their perceived benefits, future commitment, and preferences. Design/Methodology/Approach ― Quantitative research design is chosen to achieve the purpose of the research. A total of 498 Malaysians located in different states were surveyed, and partial least squares-structural equation modelling (PLS-SEM) analysis was conducted for data analysis. Findings ― Results of the analysis indicate that most of the respondents believed that the suggested plan is viable in terms of the benefits it provides and in line with their future commitment. In addition, both public and private employees have high interest in the proposed plan that appears to suit their retirement plans and health protection needs during that period. Originality/Value ― This study structured an original illustrative retirement health protection plan to test its viability among public and private employees. Research Implications/Limitations ― Results of this research are significant in proving that the suggested model of i-HPRP is attractive and would have positive acceptance among Malaysians once offered in the takāful (Islamic insurance) market. It would motivate takāful operators to develop this model as currently there are limited annuity takāful products offered in the market.