As mentioned in topic, anyone of you can please advice. If i buy MLTA property insurance, does it mean i no need to buy personal life insurance? This 2 insurance is same?

For myself, i got bought the personal life insurance in age 21. Heard from the insurance agent, personal life insurance should buy early, because it's more cheap compare later.

How about MLTA?

Hi Kelvin

Believe that MLTA would be higher with age.

Attached is a website on the difference between MLTA and MRTA

http://www.horlic.com/mrta-vs-mlta-which-o...loan-insurance/

Hope this helps.

MLTA is essentially a Life Insurance Policy.

MLTA is just another Life Insurance Policy, dedicated for risk protection related to a Mortgage.

A person with proper planning in their life, will have multiple policy acquired at different stage of life.

There are no straight forward answer whether you need or not, it depends on your situation.

Basically, you need to understand the features of a product, best with help with a "good" financial planner or agent.

Yes, age do determine the rates. It really depends on your situation. there is no right and wrong answer.

MLTA is actually life insurance that usually we assigned to the bank with the purpose to pay off all debt in case of prematured death. Some might add in critical coverage as well.

Nobody buys mrta anymore?

Banks will ask u to take MRTA when u're applying for their property loans. Still depends on the loan amount.

Not all banks nor financial institutions that gives out property loans leh, MugenK20A-san.
I've done SCB, OCBC and ING - all 3 did not force me to take MRTA.

This post has been edited by wongmunkeong: May 24 2012, 11:20 AM

Hi, MLTA actually is life insurance for purpose of mortgage purpose. They are same with personal life insurance as well. But don't mix up this 2 plan cause different purposes am...

MLTA is in case of death and TPD happened, your home loan will settle by insurance company, BUT the values must sufficient. Then may got balance pay to your beneficiary after home loan deducted at the several years instalment.

Personal life insurance is in case of death and TPD happened, lump sum money will pay to your lovely wife, children or parents. Because you are the economic pillar for the family. Just imagine that, if you just bought MLTA, anything happens, the home is FOC but how bout the daily expenditure, children education fees....etc

So plan yourself and choose for the most suitable plan yourself. If you need any advise pls feel free to contact me @ 012.388.6323. Tq

So if i already had life insurance, no need to buy MLTA? just take MRTA to cover the house right?

MLTA more expensive~ life more cheap.. As I know~

for exemple if i took life insurance with any insurance provider, and insure higher (to cover home loan, house loan, and expenditures for family), i dont needs to take MLTA nor MRTA, is it?

There are a lot differences between MRTA and MLTA. I believed you are not familiar with the differences. One of the difference is, MLTA does have fund value but not MRTA, the money u paid will become 0 when end of loan tenure and the value will depreciate.

You can say so... I agreed with it... But I will evaluate the sum assured every year because our liabilities will increase as well....

if we re evaluate the sum assured, means that we change the contract, isnt it? so if i took my own life insurance, will the bank take into the consideration this life insurance to offer best interest? or they wont look at it, and offer high interest due to no MRTA/MLTA?

I dont work in banks. But taking up mrta should not influence the interest rate on loan. Based on their credit check. Mrta should not be factor.

You can request to change sum assured with insurance companies. Subject to t&c of course. Just contact your agents

In term of Cash Value

MLTA = MRTA + Cash Value


In term of Flexibility

MLTA > MRTA


In term of Total Payment

MLTA > MRTA


In term of value-add to holistic financial planning

MLTA is better than MRTA

U can actually call up to your insurance company And increase the sum assuredwif t&c. Won't affect the interest rate either u buy from insurance company or the bank but as now I know, PBb offering the best rate but u must purchase MRTA from them. There is no rules from Bank Negara stated that we must buy it from the bank.

Hi,

As long as the total sum assured is enough to cover the financial lost of the unfortunate event, so it doesn't matter what type of insurance product you have bought. MLTA is nothing special but just a life insurance product. Since it is not related to your loan, you don't have to worry about any changes you made to your loan may void the insurance policy.

In my opinion, try to avoid those insurance plans that comes with return when the purpose of buying is to protect your loan. Insurance plans with higher protection is more important than higher return when the purpose is to protect loans. Additional money should be used to offset loan first instead of savings. It's not necessary to pay higher premium just because you want to get back a portion of the premium you have paid. Personally I think it's not worth to do so.



Regards,
Gavin Lim from AIA

Life insurance just cover your life economic value but not for the house which may be valued above rm500k. How many normal people u noe buy life insurance with sum assured above this value? Thats why it is for a diff purpose. MLTA is better than MRTA

MLTA has no effect with your house loan interest rate. It got nothing to do with banks. They just help insurers sell them. So no worries.

This post has been edited by SithBuster: Aug 1 2013, 12:26 PM