If you have recently started paying attention to the coverage of medical insurance, or are concerned about medical inflation, the Employees Provident Fund (KWSP) insurance withdrawal plan may be a good option that does not affect your daily cash flow. In recent years, the Malaysian government has continuously improved EPF benefits, allowing members to utilise their savings to build a basic medical safety net. Here are a few key points to clarify first, guiding you step by step on how to purchase medical insurance through your EPF account.
In simple terms, i-Lindung is a voluntary facility launched by the Employees Provident Fund (KWSP) under the “Members Protection Plan”. The plan aims to help members who do not have sufficient budget or cash flow to obtain basic protection such as life insurance and critical illness coverage by withdrawing from their EPF savings.
After EPF implemented account restructuring, the funds used to pay premiums will be directly deducted from your Akaun Sejahtera (formerly known as the Second Account / Akaun 2). This savings portion is originally reserved for mid-term financial needs such as housing, education, and medical care. As long as the balance is sufficient, you can avoid the hassle of paying premiums in cash.
It is worth noting that i-Lindung underwent a second-phase upgrade in February 2024. The plan now not only covers the member themselves but also allows you to purchase protection for your spouse and children (immediate family members) according to your needs. In addition, according to the latest parliamentary reply from the Ministry of Finance in March 2026, the government is actively exploring and piloting the inclusion of basic medical and health insurance (Base MHIT, commonly known as Medical Card) into the i-Lindung withdrawal scope. This means Malaysians will soon enjoy more comprehensive and premium-stable medical card options in the future.
Before using EPF to buy insurance, you must first confirm whether you meet the basic thresholds set by KWSP. To successfully apply for insurance through the i-Lindung platform, the following conditions must be met:
After understanding the conditions and company options, the next step is the actual operation. The entire online application process is quite straightforward and can be completed by yourself without going through an intermediary:
Using retirement savings to purchase insurance is an important financial decision. Before clicking “Agree to Deduct”, it is advisable to objectively weigh the advantages and disadvantages:
Advantages:
Disadvantages:
Can I use EPF to purchase a medical card for my spouse or children?
Yes. Since the second phase of KWSP’s i-Lindung launched in February 2024, the plan scope has been expanded to allow eligible members to use Akaun Sejahtera (Second Account) to purchase insurance protection for immediate family members (including spouse, biological children, and legally adopted children).
Are premiums automatically deducted from EPF every year?
For one-year or long-term renewable policies, the system will check your Akaun Sejahtera balance upon policy expiry. If you have set up auto-renewal authorisation at the time of application and the account balance is sufficient, the premium will be automatically deducted to keep the policy in force.
What should I do if my Akaun Sejahtera balance is insufficient to pay next year’s premium?
If facing insufficient balance in the EPF Second Account, the automatic deduction cannot be completed. To avoid policy lapse, the policyholder must proactively top up the premium using cash, online banking transfer, or credit card through the insurance company’s official website, customer service, or designated bank channels.
Do I need a medical examination when using EPF to purchase insurance?
No. Insurance products purchased through the i-Lindung platform emphasise seamless connectivity and convenience. Policyholders do not need to undergo cumbersome physical medical check-ups; they only need to honestly answer and submit a simple electronic health declaration questionnaire online.
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