LIAM Response on the tabling of 2021 Budget by the Minister of Finance Malaysia, Yang Berhormat Tengku Dato’ Sri Zafrul Aziz

(Issued by the President of Life Insurance Association of Malaysia (LIAM), Ms Loh Guat Lan in conjunction with the tabling of the 2021 Budget by the Minister of Finance Malaysia, YB Tengku Dato’ Sri Zafrul Aziz)


Kuala Lumpur, 7 November 2020: The Life Insurance Association of Malaysia (LIAM) would like to thank the Government for the tabling of a very caring and inclusive budget to take care of the well-being of the Rakyat in facing the most unprecedented crisis in both health and economic due to the COVID-19 pandemic.

1. RM50 Perlindungan Tenang Voucher for B40 and the waiver of stamp duty for the purchase of Perlindungan Tenang products for another 5 years to 2025

This incentive is extremely encouraging for the B40 community as Perlindungan Tenang products have been specially developed to incentivize the youth, young families and B40 household segment to purchase life insurance. It is indeed timely for the B40 household to receive the RM50 voucher of Perlindungan Tenang as a form of protection during these uncertain times.

These products are also intended to be suitable for Malaysians who are not currently covered by any form of insurance or takaful protection.  The guiding principles for these products are that they are affordable, easily accessible and provide a simple claims process. The support from the Government is important to empower the B40 group to take the first step to introduce financial planning in their families. 

Riding on three basic criteria of being affordable, easy and simple claims process, the availability of Perlindungan Tenang products is important in providing immediate temporary relief in the event of misfortune, able to access financial resources and having peace of mind knowing that financial relief is available in an easy and timely manner.

Life insurance will come in handy as they can help one’s family to sustain their lifestyle in the event of demise of the breadwinner or diagnosed with total permanent disability which prevents them from working and earn for the family.

Perlindungan Tenang offers simple protection plans with premiums as low as RM33 per annum for protection from RM10,000 to RM30,000.  These products are easily accessible via various distribution channels – online platform, mobile phone, banks, agents, walk-ins and post offices. It provides easy claims process where claims are processed within 5 days upon submission of complete documentation. A list of Perlindungan Tenang products is available in the LIAM website at

The industry hopes that through this incentive, it would benefit about 12.8 million of B40 households in the country.  Ultimately, it would help to fulfil the nation’s aspiration of insuring 75% of the population and accomplish the industry’s financial inclusion agenda.

The industry would also like to thank the Government for the extension of waiver of stamp duty for the purchase of Perlindungan Tenang products for another 5 years to year 2025. 

2.  Enhancing Long-term Protection and Security for the Rakyat by allowing the utilization of EPF Account 2 for Life Insurance and Medical Insurance

In these uncertain times, financial well-being should go beyond a strong retirement fund or immediate cash needs.

The industry is appreciative of the Government’s decision to allow the EPF members to utilise the EPF Account 2 to purchase Life Insurance and Medical and Health Insurance (MHI), including critical illness.  This would provide better long-term protection and security to EPF contributors in the long run.

Life insurance provides financial coverage for the family in the event of a death or illness of the family breadwinner. By allowing members to purchase life insurance from Account 2, it will help the members to augment their EPF savings to provide financial protection for themselves and their family in times of need.


Moving forward, the life insurance industry continues to play an important role in financial protection, financial accumulation and healthcare funding for the nation.

With proper advanced planning and the right incentives for the Rakyat, the private sector and the Rakyat can be incentivised to play a bigger role and form a public-private sector partnership with the Government in sharing the cost of various social economic benefits associated with a developed nation.