Free RM80,000 protection from the Malaysian Government. Want to know how?
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Since personal finance is a topic under Advanced Taxation (ATX), it might be of practical interest to some plan for your child's education and I would like to point out on this SSPN (National Education Savings Scheme). (SSPN-i plus) account.

SSPN-i Plus is a savings scheme for your child (or yourself) which bundled with insurance protection. Why it is worthwhile to consider?

1) You get a max TAX RELIEF of RM6,000 (for the NET SSPN Savings) 
(Increasing to RM8,000 in Budget 2019)

2) The insurance portion is affordable or would say is cheap. Let's say you start on RM100 monthly savings for your child, RM90 is your savings and RM10 is your insurance cost. What is your coverage like?
(i) RM40,000 on accidental death or total permanent disability
(ii) RM20,000 on natural/illness death or TPD
(iii) 36-critical illness protection of RM10,000
(iv) Daily hospitalisation allowance of RM20
and funeral expenses for you/spouse/children.

[A typical Term Insurance with similar coverage can costs between RM150-RM250 annual, depending on your age, life style, health condition]

3) The Dividend for SSPN account is quite attractive and fair, approximately 4%.

So, if you Opted for say RM200 per month savings scheme. You get "Double the Insurance benefit above".

And a simple simulation for some of you:

RM2,400 is your yearly contribution
RM 240 is your insurance premium

RM 2,160.00 your savings in account
RM 86.40 your dividend
=========
RM 2,246.40
RM 192.00 (tax savings if your marginal tax rate @ 8%)
=========
RM 2,438.40
=========
Therefore, conclusively, you still get back a small return of 1.6% on your savings, but you get a FREE RM80,000 insurance coverage - paid for by the government.

SSPN Scheme is guaranteed by the Malaysian Government. 

And the nice simple thing is, you can start the account ONLINE. The Link for your reference: 
https://en.sspn-i.com/
 
This is a worthwhile Tax Planning to be considered for those who have children. 
 
 
Low Chin Ann is the Founding Director of Genesisorigo 
 

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