Life and Medical Insurance Tax Relief

Your easy guide to tax relief calculation for life and medical insurance. How much tax relief exemption are you entitled to?

There are six (6) broad categories for life and medical insurance. Depending on the type of your policy you can claim for one of the three categories for tax relief related to life and medical insurance as below.

Contents

3 Categories for Tax Relief

Life insurance and EPF: limited to RM6,000
Deferred Annuity and PRS: limited to RM3,000
Education or medical benefit: limited to RM3,000

Note: Insurance payment premiums through salary deduction are also entitled

Life and Medical Insurance Categories

Life

Life or rider insurance without Major Illness Cover. 100% of premiums paid are eligible for tax relief as life policy.

Insurans hayat atau rider tanpa Perlindungan Penyakit Utama. 100% daripada premium-premium yang dibayar adalah layak untuk pelepasan cukai sebagai polisi hayat.

Education / Life

Education or life insurance. 100% of premiums paid are eligible for tax relief as education or life policy.

Insurans pendidikan atau hayat. 100% daripada premium-premium yang dibayar adalah layak untuk pelepasan cukai sebagai polisi pendidikan atau hayat.

Medical / Life

Life or rider insurance with Major Illness Cover. Only 60% of premiums paid are eligible for tax relief as medical policy. However, 100% of premiums paid are eligible for tax relief as life policy.

Insurans hayat atau rider dengan Perlindungan Penyakit Utama. Hanya 60% daripada premium-premium yang dibayar adalah layak untuk pelepasan cukai sebagai polisi perbelanjaan perubatan. Walaubagaimanapun, 100% daripada premium-premium yang dibayar adalah layak untuk pelepasan cukai sebagai polisi hayat.

Medical

Medical Insurance. 100% of premiums paid are eligible for tax relief as medical policy.

Insurans perbelanjaan perubatan. 100% daripada premium-premium yang dibayar adalah layak untuk pelepasan cukai sebagai polisi perbelanjaan perubatan.

Annuity / Deferred Annuity

Annuity/Deferred Annuity Insurance. 100% of premiums paid are eligible for tax relief as annuity/deferred annuity insurance.

Insurans Anuiti/Anuiti Tertunda. 100% premium yang dibayar layak mendapat pelepasan cukai sebagai insurans anuiti/anuiti tertunda

Others

Accidental/ waiver riders. Premiums paid are not eligible for tax relief.

Rider kemalangan/pengetepian. Premium yang dibayar tidak layak mendapat pelepasan cukai.

Insurance Tax Relief Calculation Process

After you receive your life insurance tax statements from your agent, downloaded online or mailed, go through the following steps:-

Check your employee EPF contribution if at RM6,000 or above. If yes, go to step 3.
If EPF contribution below RM6,000 check Life category premium whether sufficient to meet short amount. If Life category premium insufficient, add Medical/Life and/or Education/Life premiums.
Tabulate Education, Medical, and Medical/Life category premiums up to RM3,000.
Tabulate PRS and Deferred Annuity category premiums up to RM3,000.
Profit! :)

Tip: Use our online Insurance Tax Relief calculator!

Share and discuss on Life and Medical Insurance Tax Relief

5 Comments

Chua LC June 30, 2018 at 10:29 pm - Reply
Hi – if one is a PCB contributor and do not pay any epf, all this applies ?
Life insurance and EPF: limited to RM6,000
Deferred Annuity and PRS: limited to RM3,000
Education or medical benefit: limited to RM3,000
Thanks for replying
Ms Chua
Hi Ms Chua, yes it applies even without EPF contribution. For example, you can claim life insurance tax relief up to RM6,000 under the EPF/Life Insurance tax relief category.
CY December 21, 2019 at 6:57 am - Reply
Say I take SSPN-i Plus Berlian package, can I claim all of the payment, i.e RM6000, under SSPN? Thanks
Hi CY, there are 2 tax relief categories for SSPN. One is the SSPN-i (without insurance) for up to RM8k tax relief. Secondly is the SSPN-i Plus (with insurance) for up to RM6k tax relief.
LIM March 3, 2020 at 11:15 pm - Reply
hi,if my AIA insurance statement stated that premier savings(life)…izit premier savings (life) can claim 100% on life insurance tax relief?
Hi, it depends on what is stated of your statement of life assured for tax relief purposes. You can check our Insurance Tax Relief calculator for the calculation.
https://mypf.my/calculators/insurance-tax-relief-calculator/
imanina August 27, 2020 at 11:47 pm - Reply
Hi, how can a takaful/insurance policy be entitled to education takaful/insurance policy?
what rider must be attaced to the policy?
i have heard it must have saving and parent contributor/waiver. is it true?
Hi imanina, the insurance/takaful must be designated as an education policy. Your tax statement summary for the insurance/takaful will state if it’s as such. (And no, not related to have parent as contributor / waiver).
Innara May 14, 2021 at 6:07 pm - Reply
Hi there,
Tabulate PRS and Deferred Annuity category premiums up to RM3,000.
May I know why do you this? While my EPF is above 6k, my total PRS is about Rm2000 and I do not have any deferred annuity. Do i still tabulate it as total of Rm3000? How do i proof it if there is a query?
Hi Innara, thanks for your query. PRS & deferred annuity is a single category where the max relief is RM3,000. EPF is a separate category where the max tax relief is RM4,000.