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.