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Best Insurance and Takaful in Malaysia for B40 and M40 On A Budget

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Looking for the best insurance and takaful in Malaysia that is also budget-friendly? If your current money situation is tight, then these online insurance options are affordable and most importantly, better than nothing.

At a glance, the insurance are:

  1. Perlindungan Tenang (various protection products for B40, sole breadwinners and people with vulnerable dependents; those eligible can claim RM75 voucher from govt)
  2. EPF i-Lindung programme (life and critical illness insurance/takaful; for EPF depositors with balance in Akaun 2)
  3. SOCSO Self-Employment Social Security Scheme (for self-employed and gig workers)
  4. INSAN – Skim Insurans Am Selangor (FREE RM10k life insurance only for Selangorians)
  5. Online Critical Illness Protection (critical illness insurance; for everyone)
  6. Online Medical Insurance (medical card; for everyone)

What type of protection a person needs varies depending on their life situation, but generally speaking you should aim to have all four of the main ones: life insurance, personal accident insurance, critical illness and medical insurance.

Let’s go over each of the affordable options one by one.

#1 – Best Insurance in Malaysia for B40: Perlindungan Tenang

Perlindungan Tenang is specifically designed for the B40 community. If you are completely uninsured and fit the demographic, go claim your RM75 Perlindungan Tenang Voucher from the government.

You can check your eligibility and find more info at

As of time of writing, there are 33 insurance/takaful options listed on the Perlindungan Tenang product page, including life insurance/takaful, personal accident, hospital income, even fire insurance for kampung house.

You can find more information on each product’s coverage by clicking the grey button.

Personally, I think Perlindungan Tenang is good… but the product options can be overwhelming for someone who is unfamiliar with insurance and takaful options. One probably will need an agent’s help to explain the products and recommend suitable ones for them.

#2 – Best Insurance for EPF Depositors: i-Lindung

Now EPF depositors can use your funds from Account 2 to sign up for life and critical illness insurance / takaful via i-Lindung programme.

Simply log into your i-Akaun account, select ‘i-Lindung’ on the dashboard and you’ll be directed to the i-Lindung portal.

The amazing thing about EPF’s i-Lindung is you can straightaway get a quotation and product options, based on your Akaun 2 remaining balance and your profile (gender, age, smoker status etc). I highly recommend trying it out.

#3 – Best Freelance Insurance in Malaysia: SOCSO’s Self-Employment Social Security Scheme

(Note: This is not technically an insurance, but the benefits are similar enough so that’s why I included it here)

Those who are employed are already paying PERKESO/SOCSO (or you should be – check with your employers). This particular plan is for those who are self-employed, including those working in the gig economy. The benefits, which I think is *excellent*, is as follows:

This Scheme provides protection for self-employed insured persons against employment injuries including occupational diseases and accidents during work-related activities.

Self-employment injury means personal injury to self-employed insured person caused by an accident or an occupational disease arising out of and in the course of his or her self-employment activity including while travelling for the purpose of his or her self-employment activity.

Occupational disease is a disease caused by or arising from any occupation specified in the Fifth Schedule of the Employees’ Social Security Act 1969. This scheme provides cash benefits to the insured persons and their dependants besides medical treatment, physical rehabilitation and vocational training.

Basically, you get:

  • Medical Benefit
  • Temporary Disablement Benefit
  • Permanent Disablement Benefit
  • Constant Attendance Allowance
  • Dependant’s Benefit
  • Funeral Benefit
  • Education Benefit
  • Facilities for physical or vocational rehabilitation

All in one plan!

Contribution-wise, your plan depends on your monthly earning. The higher your insured monthly earning, the higher your contribution per month/year. There are four plans, ranging from RM13.10 to RM49.40 contribution per month:

PlanInsured Monthly EarningContribution Payment Per MonthContribution Payment Per Year

For more info on enrolling in this scheme, please refer to my article How to Apply for SOCSO / PERKESO Self-Employment Social Security Scheme

#4 – INSAN – Skim Insurans Am Selangor

INSAN or Skim Insurans Am Selangor is a FREE initiative from the Selangor state government. You can get the RM10k life coverage if:

  • Your IC is registered in Selangor, or
  • Your latest address is registered in Selangor, or
  • You are a voter in Selangor

To claim, you must:

  • Download WavPay app (find in AppStore)
  • Click Daftar Sekarang banner (see image below)
  • Go through the quick registration steps. My tip is to have a clear pic of your IC ready

#5 – Best Medical Insurance in Malaysia for B40 and M40 – Online Critical Illness Protection

If you are not eligible for critical illness protection from EPF i-Lindung, you can get from these two providers:

  1. FWD Takaful Big 3 Critical Illness Protection Plan (covers Cancer, Stroke and Heart Attack), or
  2. MSIG EZ Critical Care and EZ Cancer Care (covers Cancer, Heart Attack, Stroke and Kidney Failure)

You will want critical illness protection. This is the one that’ll give you a lump sum of money when you get really sick, so you can use it to pay for life’s expenses. Ideally, you want at least a few years’ worth of living expenses. At a minimum.

For the two plans above, you’re only covered for 3 or 4 critical illnesses out of the usual 36/40 critical illnesses, but those 3 or 4 make up 85-90% of critical illness claims.

fwd takaful critical illness insurance
Credit to Chun Saw (@chunsaw) for sharing this table with me 🙂

Prices depend on gender, age and smoking status. As a benchmark, at time of writing, I’m a 33 year-old non-smoker and my quote for both plans is:

  • RM27.68 per month (RM100k sum assured) for the FWD Takaful plan, and
  • RM10.96 per month (RM50k sum assured) for the MSIG EZ Critical Care Plan

As someone who is actually paying RM171 per MONTH for RM200k for critical illness insurance, believe me when I say the two options above are much more affordable.

The downside is, of course, you won’t be covered for the other illnesses. But seeing the odds.. and considering the limitation of budget.. it’s not a bad decision to make.

#6 – Online Medical Insurance

Last but not least, you can get affordable medical insurance nowadays directly from insurance/takaful providers.

I actually made a separate article for this; 6 Affordable Medical Insurance You Can Buy Online in 15 Minutes. In the article, I’ve listed 6 online medical providers. They are:

Do visit the article because in each section, I will show you the quotations I got, the plan at a glance as well as their pros and cons. At the end of the article, I’ll also share which online medical provider you may want to go with.

Are there any other affordable insurance company in Malaysia that I missed?

What other affordable insurance company in Malaysia or online insurance options deserve to be on this list? What other tips do you know to balance cost and coverage? Would love to hear your tips and advice – share them in the comments section below!

Bonus section- Does this insurance cover…

1) Does insurance cover therapy?

As a general rule, no. Insurance does not cover therapy.

2) Does insurance cover abortion?

No. Insurance does not cover abortion.

3) Does insurance cover IVF?

No. Insurance does not cover IVF. However you may be able to withdraw from EPF for fertility treatment.

4) Does insurance cover contacts?

No. Insurance does not cover contacts. You may want to opt for glasses instead – if you know where to look, you can find cheap spectacles in Malaysia quite easily.

5) Does insurance cover Plan B?

No. Insurance does not cover Plan B.

6) Does insurance cover dental implants?

As a general rule, no. Insurance does not cover dental implants.

However, it may be possible in very specific situations. For example, if you got the SOCSO / PERKESO Self-Employment Social Security Scheme and, I don’t know, a freak accident happened while you were working and you lost some teeth, then you may be able to make a claim and use the funds to cover the cost of dental implants.

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  1. FWD Takaful just launched a new product that cover Life Protection + Critical Illness from as low as RM46/Month. What more is that they paid back 100% of your monthly contribution if there is NO CLAIM made until the end of the policy!

    1. Hi, some of the products above have high age limitations, worth a look.

      Otherwise, you can also talk to financial advisors, sometimes specific plans for seniors come up

  2. A simple direct online insurance can be purchased directly from all Life Insurer web page nowadays. This is a requirement by BNM. The online product offered are life insurance, medical insurance, and critical illness insurance. These are basic insurance that provide basic coverage but very affordable.

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