Hello, I'm interested to know some details about relief income tax from insurance.

I've heard people told me that ONE policy can only be used to relief ONE of the insurances (KWSP/Life Insurance and Educational/Medical Insurance) from the income tax, if you want to relief both items, you need to have TWO policies. How true is that??

Secondly, what are the types of Medical Insurance? 36 Critical Illness is one of them right? What are the others?

Thank you very much

Medical Insurance and Life Insurance have separate sections for deduction. Refer to your income tax form.

You should receive a Statement from your Insurance Company for tax purposes which states how much premium you have paid for either Life or Medical Insurance.

Most insurance co's have provide breakdown on the premium for each type of insurance coverage. Just refer to your annual statement, normally at the back of statement.

For life insurance, please note that the maximum premium plus the EPF deduction (employee) allowable for tax deduction is RM6000.

Let say your total is RM3000 for life insurance, and RM4000 for EPF deductions, the total is RM7000, but you can only fill in RM6000.

so I can conclude that as long as the statement showing the premium respectively, it can be the proof to relief in income tax. Thanks

If I bought the insurance not longer than 1 year, assuming 1st Dec, so the calculation for the relief of income tax in that particular year is RM A / 365 days * 31 days (December) ??

How about which insurance is fall under the Medical Insurance? Medical Card is one of the Medical Insurance or not?

The amount deductable is the total amount you paid to the insurance company for that year.

Medical card/Hospitalization insurance is 100% medical insurance. Do noy pro rate the premium the whole amount is tax deductible.

different theory or misunderstanding?? if you started to buy insurance on June, when you do the income tax for that year, you have the half premium on your income tax relief or full?

Thank you

The amount deductable is the total amount you paid to the insurance company for that year.

Exactly what he said, if you buy in June and paid for a whole year, then the full amount is deductable subjected to the limit.

Contributions to the Employees Provident Fund and insurance or takaful premiums for life policies are allowed a maximum total tax relief of RM 6,000.

A further tax relief of RM 3,000 is given for insurance or takaful premiums with respect to medical and educational purposes.

Actually what's the difference between medical insurance and life insurance?

i bought a life insurance comes with medical card for hospitilazation. .. is that it?

Yes you should have a breakdown of the portion for life and medical insurance in your statement/policy.

Oh yes! Thanks!