Budget 2021: EPF Akaun 2 Withdrawals Allowed For Life, Critical Insurance Plans

Budget 2021

Jacie Tan

6th November 2020 - 1 min read

The Employees Provident Fund (EPF) will now allow members to make withdrawals from Akaun 2 for the purpose of purchasing approved life and critical illness insurance plans.

“The low insurance penetration rate in Malaysia is one of the factors that threaten the financial stability of individuals and households,” said Finance Minister Tengku Zafrul Aziz. “With that, EPF will allow its members to make withdrawals from EPF Akaun 2 to buy life and critical illness insurance or takaful products for themselves and family members.”

The finance minister added that the insurance or takaful plans in question must be ones that are approved by EPF.

Two other EPF-related initiatives that have been announced as part of Budget 2021 include the introduction of targeted Akaun 1 withdrawals and the new employee contribution rate of 9% from January 2021.

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Bernard Woo Ken Vui

3 years ago

KWSP ACC 1 withdrawal for targeted not fair. How about those monthly income below 2000? They should be entitled too if needed. It’s a long journey of suffering, further more it’s our money, not for the government to decide to whom should deserved it most. Don’t forget, it’s the Rakyat money. B40 with monthly income less 2k should be entitled withdrawal from KWSP acc 1 too. Set aside other on going or coming soon initiative from government because that’s their responsibilities to the Rakyat. Thank you