Takaful provide financial protection through family income continuation, hassle-free medical treatment, lifestyle maintenance, education protection and loan repayment. The main idea of this study is to identify the relationship of loss exposure, affordability and financial capacity on the need of financial protection. The study is conducted on employed respondents in Kota Bharu, Kelantan and distributed to 384 respondents. This study used statistical analysis of Pearson’s Correlation by using SPSS version 25. The higher correlation denotes the importance of the independent variable to the dependent variable. This study found that all of the independent variables have moderate positive relationship with dependent variables of this study. This study is seen beneficial to the takaful participants, government and takaful operators to promote and enhance family takaful penetration in the country. Future studies with larger sample size are strongly recommended.