The SSSPN-i Plus scheme serves not only as an education fund but provides far-reaching benefits to the depositor.
THE government is making it easier for the public to save for their higher education through its National Education Savings Scheme SSPN-i Plus.
The SSPN-i Plus, which was introduced by the National Higher Education Fund Corporation (PTPTN) in June, doubles as an education fund besides providing affordable and comprehensive Takaful (Islamic insurance) coverage to the depositor.
The product, a result of the strategic collaboration between PTPTN and Hong Leong MSIG Takaful (HLM Takaful), aims to instil in Malaysians the savings culture.
Hong Leong MSIG Takaful Berhad Chief Executive Officer, Wan Mohd Fadzlullah Wan Abdullah highlighted the importance of having a financial education plan, especially with the climbing cost of education.
“SSPN-i Plus is a good choice as it provides consumers with a comprehensive plan that includes the savings, medical and protection elements.
“Every individual should allocate some money for their savings and takaful, even if it is only a consistent monthly allocation of RM50.
“Don’t make the practice of savings a last resort.”
He said SSPN-i Plus is in line with the Government’s plan to have a Micro Takaful product in the market that is affordable for anyone in the country.
The scheme has a variety of benefits to depositors, including a financial savings scheme and a variety of takaful coverage packages from as low as RM50 per month.
“With RM50, one’s takaful contribution is only RM10 per month.
“However, the depositor will enjoy protection benefits even with such a small amount,” said Wan Mohd Fadzlullah.
SSPN-i Plus targets individuals with a monthly income of less than RM10,000.
They should take the opportunity to enjoy a tax relief of up to RM12,000 per annum, he added.
Mohd Fadzlullah said the scheme will help the young save for their education, reduce their dependency on the education loan to continue their university education, and raise an awareness on the importance of saving for their future needs.
The government has also provided a variety of exemptions for taxpayers to reduce their tax burden, with 21 tax exemptions given to taxpayers for the 2015 assessment year.
According to the IRB Deputy Chief Executive Officer (policy) Noor Azian Abdul Hamid, the exemption for the SSPN-i savings aims to encourage more parents to save for the children’s education in the future.
Noor Azian explained that the scheme does not only act as an education fund for one’s child but enables parents to reduce their income tax.
“For the 2015 assessment year, savings that qualify for a tax relief include net savings made until Dec 31,” she said.
Based on statistics on the net savings in SSPN-i for the 2014 assessment year, an estimated 150,000 individuals have enjoyed this relief.
PTPTN also introduced the SSPN-i Plus Wow! Prize Draw.
The draw offers a variety of prizes worth RM3mil to depositors who open an account in the first year.