Malaysia: EPF offers members life, critical illness insurance option

| 18 Jul 2022

Employees Provident Fund (EPF) contributors will now be able to buy insurance and takaful products at an affordable premium from Account 2 with the launch of the EPF Members Protection Plan, i-Lindung, said Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

Consisting of life and critical illness protection, the insurance and takaful offerings are available to EPF members with immediate effect, he said.

Access to the basic level of the social protection and security system is crucial to ensure comfortable living conditions for all citizens throughout their lives, said Tengku Zafrul in his opening address at the launch of the EPF Members Protection Plan, i-Lindung, in Kuala Lumpur recently.

“A study by the National Health and Morbidity Survey showed that almost half of the Malaysian population do not have additional savings to pay for medical expenses.

“This is a challenge that will be faced by Malaysians as we get closer to achieving the status of an ageing nation as early as 2030.

“If the elderly are unable to meet their basic needs, the financial burden will be borne not only by the government, but also by taxpayers in the future. This will also lead to increased medical costs for Malaysians,” he said.

Separately, he said voluntary contributors under EPF’s i-Saraan programme have jumped by 77% to 599,000 people in the first quarter of 2022. 

“I understand that the EPF will also continue to target the informal and self-employed sectors to ensure that all Malaysians will benefit from retirement savings,” he said.

In a statement, EPF explained that members who wish to purchase insurance and participate in takaful products offered by EPF-approved insurance companies and takaful operators can do so via the i-Lindung platform within the EPF i-Akaun (Member) portal. 

“The participating insurance companies and takaful operators are FWD Takaful Bhd, Prudential Assurance Malaysia Bhd, Prudential BSN Takaful Bhd, Etiqa Life Insurance Bhd, and Etiqa Family Takaful Bhd.

“For added value, the insurance companies and takaful operators in the i-Lindung platform are able to provide additional coverage and customise the price of their products according to members’ affordability. No medical check-up is required,” it said. 

Members below the age of 55 with a sufficient balance in Account 2 who are registered with i-Akaun are eligible to purchase the products under i-Lindung. 

“Those aged above 55 can also purchase products under i-Lindung provided they are within the eligible entry age of the related products and can maintain a minimum RM100 in their Akaun 55 or Akaun Emas,” it said, according to The Star.