Pay less income tax with this one simple tip

Are you under claiming your insurance tax relief?

After all, tax planning is part of financial planning.

Digest these 2 facts

  1. Your EPF contribution alone would have maxed out the RM 6,000 quota for EPF & Life insurance tax relief
  2. 60% of Medical/Life insurance premium is claimable under medical insurance tax relief of maximum RM 3,000

So how do you know which one is which and how much is this 60%?

FYI, there are 4 types of insurance which qualify for tax relief.

1. Life

2. Education/Life

3. Medical/Life

4. Medical

The easy way to do this is to look at your annual statements. Even easier, you could register for e-Connect to view your statement online at your convenience.

After you login, you go to ….. Statement > Life > Statement of Life Assurance Premium Paid

Great Eastern online

Here’s a snapshot of my whole life policy statement with 36 Critical Illness rider. With this, it falls under the category “Medical/Life” policy.

Medical life premium tax relief

Since you probably have maxed out on the RM 6,000 life insurance + EPF quota, you can actually take 60% of your life insurance premium here (represented by A) and fill in the quota for medical insurance tax relief of RM 3,000.

*Of course, your hospitalization (medical card) policy would still entitle you for 100% premium of the medical insurance tax relief

Unfortunately, I have submitted my income tax return form 2 weeks ago. But I’ll definitely be smarter next year.

After all, every buck saved is a buck earned.

Share this if you find this useful 🙂

5 thoughts on “Pay less income tax with this one simple tip”

  1. Hi LCF,
    If i have quota left for both the below tax relief, and i have 1 more life/medical insurance, say RM500. So do i break this RM500 as below?
    1. Life insurance tax relief (RM500 x 40%)
    2. Medical insurance tax relief (RM500 x 60%)
    Is this the correct ratio?
    Thanks a lot for your advice.

  2. Hi LCF, my insurance policy shows something like this :

    Life Premiums : RMXXX
    Life with Critical Illness Cover : RMXXX
    Medical Critical Illness Cover : RMXXX
    Total Premium RMXXX

    When you said life insurance policy with critical illness rider, does it falls under the 2nd category? Or if let’s say the 2nd category amount is zero, but there are amounts under the 1st & 3rd categories, can I still use 60% of the Life Premiums amount?

  3. Hi, my husband works and I don’t. We use category 4 assessment. We each have medical insurances and 36 illness medical/life policies. My husband is paying for these 4 policies. Can he claim for 100% of Medical policies and 60% of medical/ life policies, including the ones under my name? (subject to max of RM3000)

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