Continuing Govt Efforts Can Encourage Young Families To Plan Children's Financial Security -- LIAM
KUALA LUMPUR, Oct 11 (Bernama) -- The government’s continued efforts to promote financial inclusion and raise awareness about the importance of life insurance protection through the extension of tax relief and stamp duty can encourage parents, especially young families, to plan early for their children’s financial security.
In a statement today, Life Insurance Association of Malaysia (LIAM) chief executive officer Mark O’Dell said purchasing life insurance for children at a young age is generally more affordable and ensures continued coverage into adulthood, regardless of future health conditions.
“This incentive will also increase the penetration rate of life insurance, which currently stands at 45 per cent, meaning that only four out of ten Malaysians have life insurance protection.
“Currently, taxpayers also enjoy another combined tax relief of up to RM4,000 for medical and education policies for children — an important complement to the life insurance tax relief extension that further supports holistic family financial planning,” he said in a response to the tabling of the Budget 2026 by Prime Minister Datuk Seri Anwar Ibrahim on Friday.
Applauding the government’s move to exempt stamp duty for Perlindungan Tenang and low-premium insurance products until 2028, O’Dell said this measure will continue to make insurance protection more accessible and affordable, particularly for the B40 community.
The Perlindungan Tenang initiative, introduced in 2017, was designed to encourage Malaysians — especially youth, young families, and lower-income households — to obtain basic insurance and takaful protection.
O’Dell said continuing support from the government plays a vital role in empowering the B40 group to take the first step towards financial security and long-term financial resilience.
He said the life insurance industry remains committed to supporting the government’s aspirations to strengthen the nation’s social protection framework.
“The industry plays a pivotal role in enhancing the rakyat’s financial well-being through protection, long-term savings, and healthcare funding.
“With proactive planning and the right tax incentives, both the private sector and the rakyat can be further encouraged to take part in building a sustainable social protection ecosystem — in partnership with the government — for the benefit of all Malaysians,” he added.
-- BERNAMA