Takaful or Islamic insurance is part of well-growth Islamic finance industry today. Many efforts have been done by the governtment and the industry player, however the Small participation from the society is always doubted.This research try to find what are the factors that people do not join takaful. The auther also want to find how far is the respondent understand about takaful and what are their perceptions about it, furhermore both aspects influenced their participation square. This research also discussed about the takaful history, its basic concepts, principles which applied and the differences with conventional insurance. To get the objectives, the author has selected a group of postgraduate students of a local university and distributed questionnaires. To analyze the collected data, author used descriptive analysis,percentages, frequencies, mean, standard deviation and chi. The results revealed that the prime factor of respondent do not join takaful because they do not have clear information about it. Respondent's understanding and their perception are significant with the participation in takaful but not so strong because majority of those who joined takaful probably not understand well and lead negative perception about it.