PETALING JAYA: Within a week of its launch on July 12, about 6,000 of the some 15 million Employees Provident Fund (EPF) members had subscribed to its i-Lindung platform under the Members Protection Plan.
About RM2 million in premiums have so far been collected from the members, who are allowed to purchase insurance and takaful products consisting of life and critical illness protection at affordable rates using funds in their Account 2.
EPF contributor Shahrin Saharoodin, 40, said he is happy to finally be able to afford life and critical illness coverage for himself.
“I purchased medical and life insurance for all my children as it is cheaper and will help protect them, I had to put them first before myself.”
Shahrin, who is a construction site manager, said he realised the importance of having insurance cover after the Covid-19 pandemic hit, but he could not afford to purchase insurance for himself.
However, the father of two said his priorities are his family’s insurance and his homeowner coverage that ensures his home is protected from unforeseen incidents such as floods and thefts.
“After the EPF announced we could purchase insurance using the funds in Account 2, I immediately purchased it.”
Shahrin added that the move made him feel more at ease as the knowledge that his family will benefit from insurance coverage gives him peace of mind.
Checks with an Insurance agent showed that the premiums via EPF’s i-Lindung are a lot more affordable compared with the usual packages offered to clients.
“Of course, there are benefits and downsides to everything. In this case, EPF members and their beneficiaries would have to go straight to the insurance provider’s office instead of obtaining any explanations to queries from an agent.”
The agent added the premiums for the sum insured would change annually compared with conventional packages offered by agents where the premiums are fixed.
“However, having the package is better than not having any insurance cover at all and I would recommend all eligible members to grab this opportunity to purchase insurance for themselves,” he said.
EPF chairman Tan Sri Ahmad Badri Mohd Zahir said the Members Protection Plan is another milestone for the EPF as it provides an avenue for social protection and financial security for members should anything unforseen happen.
“Protection through insurance and takaful is one of the key components of financial wellbeing, which we highly encourage our members to obtain to be protected against financial uncertainties.
“The i-Lindung facility is especially beneficial for EPF members where we work with insurance companies and takaful operators to offer the most affordable rates to our members.”
EPF members below 55 years old with a sufficient balance in Account 2 who are registered i-Akaun users are eligible to purchase the products under i-Lindung.
Meanwhile, those above 55 years can also purchase products under i-Lindung provided they are within the products eligible entry age and maintain a minimum of RM100 in their Akaun 55 or Akaun Emas.
