KUALA LUMPUR: The government’s move to increase individual income tax relief on education insurance and medical and health insurance premiums to RM4,000 is seen as a good financial planning incentive to encourage more Malaysians to purchase medical and health insurance plans as well as education policies for their children.
Previously, the income tax relief on education insurance and medical and health insurance premiums was RM3,000.
Life Insurance Association of Malaysia (LIAM) chief executive officer Mark O’Dell also commended the move to increase the individual income tax relief for medical expenses of up to RM10,000, which also covers medical and health insurance plans with co-payment features. “By specifically encouraging medical and health insurance with co-payment plans for a family, it will help policyholders manage the cost of medical premiums in the long run and help fund their future long term medical needs,” he said in a statement today.
He pointed out that co-payment insurance plans allow insurers to offer lower premiums because policy owners are sharing the cost of medical expenses.
O’Dell said the government’s commitment to continuing the Perlindungan Tenang Voucher Programme in collaboration with Bank Negara Malaysia and the insurance and takaful industry will continue to empower the B40 group to take the first step to introduce financial planning in their families.
This initiative will benefit up to two million Sumbangan Tunai Rahmah (STR) recipients, who are eligible to claim a RM30 voucher to finance part of the cost of purchasing a Perlindungan Tenang product that offers protection from death, personal accidents, and general risks such as fire and flood.
“This incentive is extremely encouraging for the B40 community as Perlindungan Tenang products have been specially developed to incentivise the youth, young families and B40 household segment to purchase life insurance.
“It is indeed timely for the B40 household to receive the RM30 voucher of Perlindungan Tenang as a form of protection during these challenging times,” he said, adding that Perlindungan Tenang insurance plans are affordable, easily accessible and the claims are simple and straightforward.
