To ensure more extra people to be protected by insurance, KWSP announced that it will launch the i-Lindung plan. Through the KWSP i-Lindung program, members will be able to use the deposits in the secondary account to purchase life insurance and critical illness insurance.
According to a survey released by Zurich, Malaysia, one-third or 38% of Malaysians still do not have any personal insurance. A quarter or 23% of Malaysians cannot afford personal insurance. Bank Negara issued a report in 2019 that almost half of Malaysians did not purchase insurance, and the penetration rate of life insurance was 55%, which has stagnated for many years.
To solve the problem that people cannot afford insurance, the Employees Provident Fund (KWSP) announced the launch of the i-Lindung plan. Members can withdraw funds from their secondary account to purchase insurance. This plan will be officially launched in 2022.
In addition, to protect the rights of housewives, KWSP will also launch the i-Sayang plan in 2022. The husband can voluntarily transfer 2% of the monthly provident fund to his wife’s provident fund account. For example, for members who pay 11% of the provident fund every month, 9% will be remitted to their provident fund account, and 2% will be remitted to the wife’s account.
KWSP will also continue to implement the i-Saraan voluntary provident fund plan in 2022. This scheme allows self-employed people to make voluntary contributions to provident funds. Self-employed people who participate in i-Saraan can also receive a government subsidy of 15% or a maximum of RM250.
