Friday, May 11, 2018

Abolishing GST - The Impact


First and foremost, we would like to congratulate Pakatan Harapan in winning the 14th General Election on 9 May 2018.

One of the items that Pakatan Harapan has promised in their Manifesto is to abolish GST.

So what is the impact of abolishing GST towards your insurance protection planning?

Disclaimer : Below is only my personal view on the above matter, exact implementation and documentation may differ.

The biggest impact on your insurance planning will be your Insurance Premium.

Yes! The premium that you will be paying will be slightly lower compared to before. However, it will take time for insurance companies to table out the possible premium reduction based on the type of policy you have bought.

As GST is also calculated in their Risk Profile when they first design the plan, it will definitely take time to re-calculate their Risk Profile and re-introduce a new, lowered, premium for all Policyholders.

My Advice

Use the savings on GST to upgrade your coverage to a higher amount. Simply because you have been paying it all these while and has gotten used to it.

With higher coverage, you and your family can definitely benefit from it in times of need.

Remember, the amount you will be saving on GST can never be able to help you when you need it, but upgrading to a higher amount with the difference can definitely be of help!

Trust me.

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