Despite the increasing penetration of digital technologies, the participation rate in online takaful remains disproportionately low. This research suggests an integrated model of e-takaful participation readiness (ETPR) and empirically tests the model. Furthermore, this study opts for primary data via a structured online survey adapted from previous studies using a purposive sampling technique. Partial Least Square—Structural Equation Modelling (PLS-SEM) is the main statistical technique used in this study. Based on the perspective of user acceptance of information technology, the current research significantly expands on factors influencing e-takaful participation readiness among 395 individuals such as religiosity and attitude. Past studies have visited the topic of e-banking readiness, but limited studies focused on its relation to the e-takaful area. The results supported the measurement model’s prediction that each research measure’s reliability and validity requirements were met. The findings indicate that religiosity and attitudes significantly influence individuals’ readiness to adopt e-takaful. Consumers with strong religious beliefs and positive attitudes are likelier to engage with takaful products. Consequently, religiosity and attitudes indirectly negatively impact e-takaful participation readiness through the influence of technological infrastructure. The findings of this study suggest takaful operators in Malaysia critically devise their new penetration strategies and focus on giving extra value to induce takaful literacy and make room for improvement in product penetration to the target segments by understanding the factors contributing to this phenomenon. This is crucial for policymakers, takaful operators, and other industry stakeholders to develop strategies that encourage greater adoption of online participation.