i got a question about Mortgage Decreasing Term Assurance (MDTA) and Mortgage Level Term Assurance (MLTA).
1. what are the differences?
2. there is a book say dont take MDTA cuz not worth it. i dont know how to justify it. (i'm seeing it from an investor perspective)
3. i'm looking at an unit for investment (definitely for the first 5 - 10 years) however i might use it for own stay cuz the location is not bad, can anyone advice which to take?

Hi, i've pm you some detail about your question. Kindly check your pm.

This post has been edited by onnying88: Jan 1 2010, 03:03 PM

from my understanding both MDTA and MLTA got cash value at the end of the tenure or break even but the MDTA not guranteed for the full amount and MLTA guranteed got the full amount. The peremium for MLTA slightly higer than MDTA.They invest the MDTA money to slightly risky investment and you could even get less than what you have pay
. these what the mortgage consultant told me the otherday.

But nowdays all mortgage consultant will encourage their client to take MLTA because of its benefits althought need to pay bit more. I also feel for first time house buyer better should take MLTA because its transferable to another property,easier for us when want to refinance later on and most importantly peremium will not change as we grow older. Other features such as PA/CI also can be included in the MLTA.

I think the features of both MDTA and MLTA pretty much the same, correct me if i am wrong.

For second house onward may be can consider MRTA(low premium) which usually offered by bank and can be financed in the loan, but of course it will add in to the interest.

ALL MDTA,MLTA,MRTA and there is another one M*** i could not remember protect the buyer(death/permenant disability).

ehhh..i also heard MLTA can cover more than one property? is it true?

MDTA = Mortgage Decreasing Term Assurance
MRTA = Mortgage Reducing Term Assurance
So both are the same actually.

MRTA or MDTA only have one type, which is one time payment, not transferable, cover for death / total or permanent disability (TPD), coverage amount reducing or decreasing by years until zero at the end and 100% no cash value at the end of policy.


MLTA = Mortgage Level term Assurance

For MLTA, there is many type of MLTA available in the market. I basically will divide it into 3 major type base on the surrender cash value because this is the main different and main concern for all who take up MLTA.

1) MLTA with no surrender value
2) MLTA with non-guarantee surrender value (normally unit link product)
3) MLTA with guaranteed surrender value

For MLTA, premium is pay by monthly or yearly, fully transferable, cover for death / total or permanent disability (TPD), PA/CI optional, coverage is level/remain the same for whole tenure, and optional for with or without surrender cash value.

Yes, MLTA can be use to cover more then one property. More property = more coverage need. So, simply just increase the sum assured of your MLTA then you are covered for both property.

This post has been edited by onnying88: Jan 2 2010, 12:11 AM

woo so nice explanation ....
Basically MLTA is just another Life insurance ..... they just change the name and ask u pay for more ....

Yup,Basically MLTA is a life insurance.
But there is a needs to have another insurance to cover your debt (mortgage loan) in case anythings bad happen.

You might paying more for MLTA compare to MRTA, but the benefit is much more better then MRTA in many cases. As i mention there is too much type of MLTA in the market now, just take MLTA that suit your needs and budget. Some banker that join insurance company even force client to take MLTA when apply loan when they know client is cash rich. Then clients end up buying some expansive MLTA.

If anyone interested to know more the pros and cons between both, or quotation for MRTA/MLTA, just give me a pm. I'll try my best to serve you well.

There's been a lot of debates going on here about the pros and cons of each stuff. Maybe it helps.

http://forum.lowyat.net/index.php?showtopic=410824

My family and I just bought 2 properties in KL, and were convinced by the bank to take out a mortgage (to take advantage of the low cost of financing). We are now faced with an issue of life insurance, MRTA, MLTA or MRTT. (Additional cost to our property investments )

a. Is it possible NOT to take these expensive insurance? If say, I upped the down payment from 30% to 50%?
b. My brothers and I (3 of us) are below 30;
c. Properties are not for own-stay but for investment purposes only, i.e. with a set time frame to be "sold" within 5 - 7 years

Advice from the sifus here would be GREAT.

a) Yes, it's totally up to you wanna take any insurance coverage for the loan.
b) below 30?, but still,if somethings happened to any of you, the loan still need to pay no matter what.
c) You may get a shorter term insurance also. like 7years MRTA/MLTA to cut down the insurance cost.

Pm me your loan amount and D.O.B if you need some MRTA/MLTA quotation to compare.

Onn

Can you pm me oso, I want to know....