Few days ago, I had supper with some old friends and I realized that many of them do not aware that they can actually claim the "36 critical illness" life insurance under ‘Medical Insurance” category when they’re filling for tax. But it is already too late for them, maybe for you too? I think this is worth to share with you guys ...
If you buy the "36 Critical Illness" life insurance from Great Eastern or they probably call it "Supreme Livin’Care Plus", you can claim up to 60% of your total premium paid under the education and medical insurance category (limit is RM 3000). However, of course you also can claim up to 100% of your total premium paid under life insurance and EPF category (limit is RM 6000).
Many people think that this critical illness life insurance can only be considered as life policy for tax relief but this is not true. It can be considered as medical policy as well for tax relief. Sometimes especially when you have fully utilized the RM 6000 limit (life and EPF), you can still claim the 60% under the medical insurance. At least this is true for Great Eastern and I'm not sure other insurance companines.
When you receive the tax relief statement from Great Eastern every year, it basically categorizes the insurance into 4 categories (stated at the back of your statement):
Life100% of premium paid are eligible for tax relief as life policyEducation/Life100% of premium paid are eligible for tax relief as education or life policyMedical/Life60% of premium paid are eligible for tax relief as medical policy. 100% of premium paid are eligible for tax relief as life policy
Medical100% of premium paid are eligible for tax relief as medical policy.
9 Comments:
Thankfully, mine is a life policy. So I think I've claimed correctly.
Er..but I'm an idiot when it comes to tax =_= Luckily I got a sister who is an accountant.
So nice, have a tax consultant sister. You can just pass everything to her and she will just settle for you.
But honestly the recent online filing system make our life way easier as compared to few years back. :)
for sharing this info..36 critical illness can be included into tax filling..but this never late for ppl who going to fill in B-Form which due date on June...
I have not had a chance yet to be qualified to file B-form. Thanks for the sharing. :)
oo..but do you know about the penalty charge if late payment or refuse to pay?
I think there is no penalty. I accidentally paying less before and it ends up they automatically deduct it from my company pay slip after few months.
Why? It seems like you haven't file your tax yet. :D
For most whole-life critical illness policy, you are only entitled up to 60% of the total premium for medical claim, while the remaining 40% is to be relieved from the Whole-life+EPF section.
For example, if the total premium you're paying for your whole-life critical illness policy is RM4,000, you can only claim up to RM2,400 for the Medical+Education Section (max is RM3,000).
The remaining RM1,600 is to be relieved under Whole-life+EPF section, if still available. (Maximum is RM6,000).
Ooops, didn't notice that it was already stated in the post :-P
Sorry for the double-posting!
I think the readers don't mind clarification. Having said so, I have never thought of the remaining can be claimed as well. Thanks for bringing this up. :)
I think if you claim for whole life + EPF, you can claim the remaining one for education + medical and vice-versa.
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