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You are a Private Doctor, should you Contribute more to EPF or Buy more Insurance?

Updated: Mar 3, 2021

I am a private doctor, Should I contribute more to EPF or buy more insurance?

Hi, This is Lim Ren En Live! This channel talks about all matters around your insurance needs, protecting your money, and your family’s future! Like and subscribe to us today!!

The golden questions for all of the private doctors out there! Should I contribute the full sum of contribution to EPF according to law, which is 12+11%, which is 23% of my income into EPF??? Or should I put more money into insurance, for my own coverage and family protection, with returns?

If you watch this, I guarantee you will learn something today and may impact your life in the future.

The debate over EPF and Insurance, should I put more in which account?

As a private medical doctor, your income is derived from the actual work you perform, in the private hospital settings, it will be your surgeon fees and consultation fees. In the private clinic settings, it will be your consultation fees, some surgical fees, and most often, your clinic operation profits that include medications and medical services.

Private hospital doctors must declare their full sum of income as what the hospitals pay you, but yet, most of them, do not pay the full % of EPF. Why? Some doctors told me it is not worth the investment? Because EPF interest is too low, and they can do better with their money investing somewhere else, like the stock market, properties, and so on.

Let’s have a look at the Historical interest of EPF for the last 30 years, it is 6.26% annually.. but recently it has dropped to 6.17%. Last year, EPF declare a yield of 5.45% one of the lowest interest rates in 40 years.

What does EPF really do for us, providing us safe heaven to save up for our retirement, which is crucial for most of the population who lack the ability to save up! But for the elite group in our society, EPF seems not too attractive for their appetite.

What are the pros and cons of putting your money into EPF, the pros

1. Safe heaven, no risk.

2. Stable interest rate 5.5-6.5%

3. It is a ‘somehow’ guaranteed by the government.

4. The restriction makes sure you have some money to retire with.

The Cons

1. It is very very rigid in redrawal, you have to be very sick or disable to get your 30% account B. But most of us, redraw account B for house loan la, Covid I- Sinar la.. and so one.. so not much left, when you’re really sick.

2. You can only redraw when you’re 55 or when you die early. Which didn’t help much too when you really need the money to survive.

3. Whatever you put in, you get, that’s all. Like a bank account.

4. No transparency in managing the money, you cannot go tell epf I want to invest in these sectors or countries, haha, they manage it for you.

SO I would suggest that we still need to put money into EPF, not that we totally don’t contribute, I too, contribute to my own EPF, although I have every reason not too, but I do, WHY??!


1. I get a tax rebate for contributing, 12% of my income from my company tax.

2. I force myself to save a little, here and there. Better to have a small safe pot than risk it all.

3. I only save the minimal requirements of me… meaning not the whole 23% of my total income, but only my declared salary income ….

Is there a better way to contribute your 23% income to savings and yet get a whole lot more benefit out of it? Yes, there is! For a medical doctor! It is a professional income protection policy!

Let me run through the comparison for you, money in EPF and Money into a Medical Professional Income Protection Policy.

The fundamentals of doing such policy are that both of us know, your ability to earn an income depends 100% on your ability to work!

A doctor stops working, he stops earning.. that’s the fact. So what will actually stop a doctor from working!!! Besides holiday?

1. A serious injury to a surgeon's hands.

2. A stroke, paralysis, unable to stand.

3. Loss of memory due to an accident.

4. A cancer treatment that prohibits him from running the clinics.

5. A major heart surgery, puts you out of work for 6 months.

6. A crazy patient that set you up in fire… an unfortunate incident in Penang.

7. And many more examples. …

So getting an extra layer of coverage against all these risks, that may stop you from working is a great idea.

So Let’s face it! If you’re not contributing to epf or just doing as little as you can! You need to rethink your strategy and start putting some money into an Income Protection Plan for your family and your potential income.

Why take the best of one side when you can enjoy the best of both worlds. Enough coverage for yourself and good returns for retirement.

Save up 23% of your income into an Income protection policy today and have peace of mind.

If you need some professional consultation on how to set this up? Call me and whatsapp me. I promise we will listen, discuss in confidentiality, design a solution that is tailored to you and implement a plan that will benefit you and your family.

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