Insurance life policy often come together with 36 Critical Illness policy. What most people don't know that the 36 Critical Illness policy can be claimable under the medical insurance portion (Maximum RM3,000). The amount is ~60% of yearly premium that you pay for your whole life policy + 36 Critical Illness Policy.
Thanks to ChampDog on his related post on this. That make me realized that all this while I am under-claiming my personal income tax. Damn!!!
Don't bother trying to search LHDN website for this fact. I LOOKED everywhere but I cannot find the tax deduction on the 36 Critical Illness. I looked even at the Tax Laws. Looks like good things like this to reduce tax is not so clearly stated for your interest.
So what you do know is:
Call up your insurance agent, which I did. Ask him/her for an Insurance premium payment statement for the Tax Year. At this statement you will see how your life policy + 36 CI is broken down to life policy & medical policy. (36 CI is considered as medical policy). You will see roughly 60% of premium is dedicated as medical portion that you can use to deduct your taxes.
Assuming that usually your EPF + Life Policy (Max RM6000 deduction) is always filled up. You know can deduct more from the medical insurance portion. Yeah!!! More tax deduction. See below table that I got from my year-end insurance policy statement.
Spread around the GOOD news!!!
