Kuala lumpur: 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.

According to BERNAMA News Agency, Life Insurance Association of Malaysia (LIAM) chief executive officer Mark O’Dell stated that purchasing life insurance for children at a young age is generally more affordable and ensures continued coverage into adulthood, regardless of future health conditions.

O’Dell highlighted that the incentive will also increase the penetration rate of life insurance, which currently stands at 45 percent, indicating that only four out of ten Malaysians have life insurance protection. He noted that taxpayers currently enjoy a combined tax relief of up to RM4,000 for medical and education policies for children, complementing the life insurance tax relief extension that supports holistic family financial planning.

O’Dell applauded the government’s move to exempt stamp duty for Perlindungan Tenang and low-premium insurance products until 2028, as this measure will make insurance protection more accessible and affordable, particularly for the B40 community. The Perlindungan Tenang initiative, introduced in 2017, aims to encourage Malaysians-especially youth, young families, and lower-income households-to obtain basic insurance and takaful protection.

O’Dell remarked that 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 emphasized that the life insurance industry remains committed to supporting the government’s aspirations to strengthen the nation’s social protection framework.

O’Dell concluded by stating that the industry plays a pivotal role in enhancing the financial well-being of the rakyat 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.