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 🙂

13 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, 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)

  3. Hi LCF

    let’s say i purchased 2 insurance policies – 1 (life & medical) and 2 (life only).

    can i mix these 2 policies (from diffirent companies) to declare my life & medical insurance premium together & put in Income Tax’s Insuran pendidikan dan perubatan?

    Thanks in advance for the advice.

  4. HI LCF,

    Thanks for your advice.
    If audited by LHDN, I can explain as what you mentioned above, right?

    1. If you got all your receipts intact, I doubt you need to explain this, Ai Lin. LHDN folks are smart people – they are the ones laying down the rules; on the contrary, we are the dumb ones if we don’t know how to interpret the rules set by LHDN, which results in under declaring our tax relief portion.

      And gosh, when you mentioned “Noted”, that sounds so engineer-ish. Just a guess 🙂 Coz engineers use this term alot.


  5. Hi,
    May I know what’s the meaning for statement below?

    “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 and fill in the quota for medical insurance tax relief of RM 3,000.”

    For example:
    My Insurance policy & Form EA as below:
    Life insurance premiums=RM1000
    Medical insurance premiums=RM2500

    In Incometax form I can declare as:-
    Insurans nywa dan KWSP=RM6000
    Insurance pendidikan dan perubatan=RM3000

    Can I declare my life & medical insurance premium together & put in IncomeTax’s Insuran pendidikan dan perubatan?

    Hope to receive your reply soon.

    1. Hello Ai Lin, you can include RM 2500 for medical insurance under Insurans pendidikan dan perubatan
      For your life insurance policy, does it have 36 critical illness rider with it? If yes, then you do this – 60% x 1000 = RM 600
      Therefore RM 2500 plus RM 600 can put under Insurans Pendidikan dan Perubatan, which is RM 3100. But max limit is only RM 3,000, so if you put RM 3,000 there, you did the right thing 🙂 Hope this helps.
      Cheers LCF

      1. 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?

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