Insurance & Takaful

Insurance & Takaful Tax Relief 

Protecting yourself and your family with insurance or takaful may also provide tax benefits. Certain premiums paid for eligible life insurance, family takaful, education insurance and medical insurance may qualify for personal income tax relief, subject to LHDN requirements.

1. Life Insurance & Family Takaful

Maximum relief 

RM3,000 

Premiums paid for eligible life insurance policies or contributions to family takaful may qualify for relief, subject to the applicable conditions.

This RM3,000 limit is part of the combined RM7,000 relief for Life Insurance & EPF. It is not an additional RM3,000 on top of that combined limit. 

2. Education & Medical Insurance

Maximum relief 

RM4,000 

Premiums paid for eligible education or medical insurance for yourself, your spouse or your child may qualify for a separate tax relief of up to RM4,000.

What education expenses qualify? 

1. Eligible life insurance premiums.
2. Eligible family takaful contributions.
3. Eligible education insurance premiums.
4. Eligible medical insurance premiums.

Note: Each type of premium is subject to its applicable relief limit and LHDN conditions.

Who is eligible?

Eligibility depends on the type of insurance or takaful policy, the person insured, the premiums paid and the relevant LHDN conditions.

Supporting Documents

• Insurance policy or family takaful certificate
• Annual premium statement
• Official payment receipts, where applicable

Important note

• The limits stated above apply to YA2025.
• Life insurance and family takaful share the RM3,000 sub-limit within the combined RM7,000 Life Insurance & EPF category.
• Education and medical insurance have a separate limit of RM4,000.
• Only eligible premiums paid during the relevant year should be claimed.

Official LHDN Reference:

https://www.hasil.gov.my/individu/pelepasan-cukai/

Official YA2025 Tax Relief Guide:

https://www.hasil.gov.my/media/levea53b/flyers-pelepasan-cukai-2025_bi_mfa2312.pdf