Malaysian taxpayers can claim up to RM7,000 in insurance-related tax reliefs annually, potentially saving RM1,400โ2,800 in income tax. Here is exactly which insurance premiums qualify and how to maximise your relief claim.
Insurance Tax Relief Categories Malaysia 2026
| Category | Max Relief | Eligible Policies |
|---|---|---|
| Life Insurance / Takaful | RM3,000 | Life, Takaful, TPD, annuity |
| Medical & Education Insurance | RM3,000 | Medical, hospitalization, education |
| Private Retirement Scheme (PRS) | RM3,000 | SSPN, PRS funds |
| SOCSO Contributions | RM350 | SOCSO / EIS contributions |
What Qualifies for Life Insurance Relief?
Premiums paid for life insurance policies, family takaful, annuities, and total permanent disability riders. EPF contributions count in the same RM3,000 bucket โ reduce your life insurance relief proportionally if EPF takes up most of the RM3,000.
Combining with Spouse Insurance
If your spouse has no income, you can claim relief for insurance premiums paid on their behalf within the same RM3,000 cap. For working spouses, each claims their own relief separately.
How to Claim
1. Gather insurance receipts and statements for the year. 2. Enter total premiums paid under the relevant relief category in e-Filing (LHDN). 3. Relief reduces your chargeable income โ multiply by your marginal tax rate to get the actual saving. 4. Keep original documents for 7 years in case of audit.
Calculate your total tax after all reliefs with our ๐งพ Income Tax Calculator.