To protect the family, is conventional insurance or takaful better?

For Muslims, takaful is the option consistent with the Shariah; the National Fatwa Committee Muzakarah holds that conventional life insurance contains elements of gharar (uncertainty), riba and maisir (gambling).
Allah forbids riba (al-Baqarah 2:275) and gambling (al-Ma'idah 5:90), and forbids consuming one another's wealth unjustly (an-Nisa' 4:29). Takaful is based on contribution and mutual help, with funds managed under Shariah contracts and supervised by Bank Negara Malaysia. For a family, the cover usually considered is life takaful for the breadwinner, medical cover, and cover for a home financing. Read the certificate carefully: who the nominee is, what is covered, and whether the death benefit is subject to hibah or faraid. Avoid taking more than you can afford so that contributions fall into arrears. See the question on who receives takaful money.