Yes, you can apply for i-Lindung if you’re over 55 as long as you’re:
- An EPF member
- Within eligible entry age of ITO offered products
- maintain at least RM100 in EPF Account 55 or ‘Akaun Emas’
Key Takeaways
Malaysia's Employees' Provident Fund (EPF) has launched the i-Lindung initiative to help Malaysians access affordable life and critical illness insurance using their EPF Account 2.
With i-Lindung, one can easily secure coverage through supported Prudential EPF insurance plans, offering protection against death, total disability, and critical illnesses.
These insurance policies ensure that you have financial support during tough times, whether it's to cover medical treatments or replace lost income while recovering.
The application process is simple, allowing you to apply anytime via the i-Akaun platform and pay your premiums conveniently from your EPF Account 2.
Best of all, there’s no need for a medical check-up, making it an accessible option even for those with pre-existing health conditions
The future is uncertain - no one knows what will happen tomorrow or in the coming year. While we all hope that we’d be fortunate enough to live happy, wonderful lives, challenges are inevitable.
Hence, having a plan for emergencies or unfortunate circumstances is vital. One simple yet effective way to protect you and your family from financial strain is to have life and/or critical illness insurance.
However, Bank Negara Malaysia reports that only 41% of Malaysians are currently covered by a life insurance policy or a family takaful certificate. Of the 41%, more than 90% are not covered sufficiently.
Additionally, it’s been discovered that only 4% of B40 households have takaful or life insurance coverage. This means that 96% of the B40 income group are either unable to afford or are uninformed about the importance of insurance coverage.
To meet this gap, Malaysia's Employee's Provident Fund (EPF) has launched the i-Lindung initiative. But before we explain what i-Lindung is all about, here are some reasons why life and critical illness insurance are essential.
What is life insurance?
Life insurance provides a payout to the insured's beneficiary in exchange for premiums paid (usually monthly) if the insured passes away. The sum of money depends on the policy and premium amount.
Why is life insurance important?
Life insurance is important in that it’s guaranteed financial protection for your family if you pass away. It can replace the loss of income, pay the mortgage, education or tuition fees, healthcare, childcare, household debts, daily expenses and even funeral expenses.
What is critical illness insurance?
A critical illness policy provides a lump sum payout if you're diagnosed with a life-threatening condition, such as cancer or heart disease.
Why is critical illness insurance important?
The money from critical illness insurance enables those who are ill to focus on getting well as it can:
- Pay for treatment.
- Pay daily expenses, so you don’t have to worry about working to cover your bills.
- Pay for transportation to treatment centres.
- Pay for a vacation if you need a restful place to recover.
What is EPF i-Lindung?
i-Lindung is an initiative launched by EPF on 12 July 2022. It aims to provide EPF members access to affordable life and/or critical illness policies as insurance is an important key to financial planning.
Under this initiative, members can use funds from Account 2 to buy insurance policies from EPF-approved Insurance & Takaful Operators (ITOs). Some key i-Lindung features include:
- A medical check-up is not required; as such, it's a great opportunity for those with prior conditions to obtain insurance.
- Access to product information so members can make informed decisions about the products before purchasing.
- Online quotation for all products.
- Flexibility to purchase i-Lindung products anytime and anywhere as the self-service platform is available 24 hours.
- Access to policy details once purchase is made.
What does EPF i-Lindung cover?
EPF i-Lindung products currently cover a one-year term for death, total disability and critical illness. However, these products can only be purchased by members for themselves, and thus, you cannot cover your spouse, children or other dependents with i-Lindung products.
Who can apply for EPF i-Lindung?
All Malaysians who are EPF members (i-Akaun users) can apply for EPF i-Lindung. However, you do need to have a sufficient balance in EPF Account 2 to pay for the premiums.
How to apply for EPF i-Lindung?
Applying for EPF i-Lindung is quite straightforward. To purchase i-Lindung products,
- First, log into your i-Akaun.
- Then, select the i-Lindung tab.
- Once the tab is open, choose one or more of the products offered by the ITOs.
- You will then be led to complete and submit details at the ITO’s portal.
- Next, you will have to authorize the deduction of the product premium from your EPF account. Payment status can be monitored in the ‘Transaction History’ section.
- Once you've completed these steps, you'll receive an acknowledgement slip from the ITO from which you purchased the i-Lindung product.
Prudential Malaysia has been appointed as one of the insurance and takaful operators (ITO) under the i-Lindung initiative. Thus, EPF members can benefit from the following plan(s) by Prudential:
- PRUGuard Family
- PRUCare Family
- PRUBSN Lindung Famili (Term Protection)
- PRUBSN Cegah Famili (Critical Illness Protection)
PRUGuard Family
PRUGuard Family is a yearly renewable, term life insurance plan offered to EPF members and their dependants (spouse and children) that lets them use funds from their EPF account to pay premiums.
It provides a Death Benefit and Total & Permanent Disability (TPD) Benefit of up to RM200,000 per life, with additional Accidental Death Benefits of up to 300% of the sum assured. Coverage is guaranteed renewable up to age 75 for each insured member, and premiums are deducted from the member’s EPF account.
This plan is designed to offer affordable family financial protection against death and disability with simplified eligibility and no waiting period upon issuance.
PRUCare Family
PRUCare Family provides coverage for 43 critical illnesses, including cancer, stroke, and heart attack, with a lump sum payout upon diagnosis. The plan also includes a death benefit and is available to EPF members, their spouses, and children, with coverage renewable annually up to age 75.
The sum assured options range from RM10,000 to RM200,000, and premiums are paid directly using EPF savings via i-Akaun. No medical check-up is required to sign up, making it easy and accessible. This is a pure protection plan with no savings or investment component. It’s designed to provide financial support during serious illness, helping ease the burden on families.
PRUBSN Lindung Famili
As for PRUBSN Lindung Famili, it is an affordable term takaful protection plan by Prudential BSN Takaful that allows EPF members to use their EPF savings via i-Lindung to obtain Death and Total & Permanent Disability (TPD) coverage.
The plan pays 100% of the sum covered upon death or TPD, with up to 300% additional payout for accidental death, is yearly renewable up to age 75, and can be extended to cover spouse and children.
Contributions are deducted directly from EPF, require simplified underwriting with no medical examination, and may be eligible for personal income tax relief, making it a cost-effective solution for basic family financial protection.
PRUBSN Cegah Famili
PRUBSN Cegah Famili is a yearly renewable group term takaful plan offered exclusively to Employees Provident Fund (EPF) members that provides financial protection for you and your family if a covered member is diagnosed with one of 43 critical illnesses (including cancer, stroke, heart attack, etc.) or passes away.
Coverage can be extended to include a spouse and children, with benefits payable as a lump sum from the takaful fund upon diagnosis or death. Contributions are deducted from your EPF account via i-Lindung, are affordable, and may qualify for personal income tax relief. The plan features simplified underwriting with no medical exams, annual renewal up to age 75, and aims to give financial support during serious health events.
Life insurance and EPF FAQ
Yes, you can now withdraw EPF Account 2 for insurance. However, you can only buy approved life and critical illness policies from approved ITOs under the i-Lindung initiative.
No, you will not need any medical assessment to purchase i-Lindung products. As such, it is a good opportunity for those with underlying health issues to obtain some form of insurance. However, you may be required to answer some simple questions the ITO requires.
Yes, you will enjoy tax relief for premiums paid towards i-Lindung products. However, it’s important to note that the only payment method available is via deduction from EPF Account 2.
Thus, if you do not contribute to EPF but wish to purchase i-Lindung products, you can opt for a voluntary contribution to your EPF. You’ll enjoy tax relief and additional dividends from the amount that goes into Account 1.
You can refer to your policy or certificate, or contact the respective ITO to make a claim. You can also check the ‘My Protection Plan’ under i-Lindung for information on policy claims.
Your i-Lindung policy coverage will start when the policy or certificate is issued. You will receive your documents via email from the ITO. Additionally, documents can be retrieved from the ‘My Protection Plan’ section on the i-Lindung webpage.
i-Lindung products are pure protection and thus, do not have any cash value or maturity benefits. This means that the ITO will cover the sum insured for the policy, but there will not be any payout once the policy period ends.
Yes, you can cancel the policy anytime. You will receive a full refund of the premium paid if you cancel the policy within 15 days of policy commencement.
Conclusion
A life or critical illness policy can be incredibly helpful if the unfortunate happens to you. Although you may no longer be around, an insurance plan eases much of the financial burden and thus, allows your family to maintain their current standard of living.
If you don't have an insurance policy to cover you and your family yet, why not consider Prudential's coverage under i-Lindung?
