Did You Know? Your Family May Receive RM2,500 from KWSP if You Die Before 60

When we think about KWSP, we usually think about retirement savings. But KWSP provides another form of support that many members and their families may not be aware of.

If a KWSP member passes away before reaching the age of 60, an eligible family member may receive a one-off RM2,500 Death Assistance (Bantuan Kematian). The payment is intended to provide some immediate financial assistance to the family during a difficult period following the member's death.

What is KWSP Death Assistance?

The Death Assistance is a one-time payment of RM2,500 provided by KWSP to an eligible person following the death of a member. An important point to understand is that this RM2,500 is not deducted from the deceased member's KWSP savings. It is a separate payment and does not reduce the amount available from the member's account.

However, the assistance is subject to KWSP's discretion, which means meeting the basic conditions does not necessarily mean the payment is an automatic entitlement.

Who may qualify?

The main conditions include:

• The KWSP member must have died before reaching age 60.
• A Malaysian citizen or Malaysian permanent resident; or a non-Malaysian citizen who was registered as an EPF member before 1 August 1998.
• Member still has savings with the EPF
• The Death Withdrawal application must be received by KWSP within six months from the date of death.
• The Death Assistance is payable only once.

Because individual circumstances can differ, applicants should check the latest KWSP requirements before submitting their application.

Who can receive the assistance?

The person who receives the Death Assistance depends on the circumstances of the deceased member and the applicable KWSP rules.

Broadly, the eligible person may include:

• Spouse - where the deceased was married
• Children - where there is no eligible spouse or in circumstances provided under KWSP's rules
• Parents - where the deceased was unmarried

There are also specific provisions involving nominees, administrators and other eligible parties. Therefore, the actual recipient should not be assumed solely based on marital status.

How does the family apply?

The RM2,500 Death Assistance does not require a separate application. Instead, the eligible applicant submits a KWSP Death Withdrawal application. The Death Assistance will then be considered as part of the process if the relevant conditions are satisfied.

The application may require documents such as:

• Death certificate
• Applicant's identification document
• Bank account information
• Proof of relationship, where applicable
• KWSP Form 9KM (AHL)
• Other supporting documents depending on the circumstances

Applications should be made at a KWSP office, and applicants should refer to KWSP's current document checklist before attending to ensure all necessary documents are available.

Why is the six-month period important?

This is an important deadline that families should not overlook.

The Death Withdrawal application must be received by KWSP within six months from the date of death. For example, if a member passed away on 15 January, the family should not wait until the last minute to begin the application. Starting the process early allows time to gather the required documents and address any issues that may arise.

This is particularly important because families may be dealing with funeral arrangements, estate matters and other urgent responsibilities immediately after a death.

What happens to the deceased member's KWSP savings?

The RM2,500 Death Assistance should not be confused with the deceased member's actual KWSP savings. The member's remaining KWSP balance is dealt with separately under the applicable Death Withdrawal, nomination and estate administration rules.

This means that an eligible family member may potentially receive both:

1. The deceased member's KWSP savings, according to the applicable withdrawal and nomination rules; and
2. The separate RM2,500 Death Assistance, subject to eligibility and KWSP's discretion.

The amount of the deceased member's savings therefore does not determine the RM2,500 payment.

One thing every KWSP member should consider: nomination

While no one likes to think about what happens after their death, keeping your KWSP affairs organised can make things considerably easier for your family. 

Members should consider making a KWSP nomination and reviewing it whenever there is a significant change in their personal or family circumstances.

It is also useful to make sure your family knows:

• That you have a KWSP account
• Whether you have made a nomination
• Where important personal documents are kept
• Who they should contact regarding your KWSP account
• What documents they may need if they have to make a claim

These simple steps can reduce unnecessary delays and uncertainty when your family is already dealing with a difficult situation.

A benefit worth knowing about

RM2,500 may seem modest compared with a person's total retirement savings, but financial assistance received immediately after a death can help with unexpected expenses such as funeral arrangements, household commitments and other urgent costs.

More importantly, many people may simply not know that this assistance exists.

References : 

KWSP – Death Withdrawal & Death Assistance

KWSP – Bantuan Kematian (Bahasa Melayu)