How much does it cost? I mean for the 160K insurance.
I'm covered quite heavily on insurance too, but it still doesn't cover my full loan amount due to my budget do not allow but I intend to do when I'm more cash free

There are multiple insurance policy that could cover you for short term up to 30 years with minimum budget.

In instant, Great Eastern having a 30 years coverage term ILP, premium about RM250/month for 20 years only, no premium required for the last 10 years. By the time 30 years, we would be out of debt and this serve as property protection very well with very minimal budget

It depends on the insurance company and the agent too. For example, I am a GE agent as well, and I could design a policy for RM160k (Death, disability, critical illness) for a 30 year old with a premium of just RM100 a month.

How can this be? Because the software allows the agent to adjust the protection and premium to our liking. It is understandable that agents would prefer to set the higher premium as we are paid based on a percentage of the premium paid, and that our income is limited to the first 6 years of the payment.

sorry because of reviving old thread
just want to confirm if its possible to be done or not

i have a life insurance policy covered up to rm400k
i had my first house loan at rm200k
if i am going to purchase my 2nd house at rm70k, do i still need to apply MLTA/MRTA?
can I just use my current life insurance policy?


This post has been edited by suadrif: Aug 11 2015, 12:42 AM

You may tell your banker you have sufficient of life insurance to cover for this loan.

However, life insurance is not only needed for debt cancellation, thorough planning will be needed including the family expenses after life. Thus, getting yourself above your debt will be good for future financial planning.

I can provide term plan RM250/month for RM500,000 life/TPD protection for age 30/male/non-smoker.

Hi,

I am 29 this year and I have few housing loans with total amount of est 1Mil. I spoke to my agent and she recommended me to upgrade my insurance plan with life insurance 400k, CI 200k with monthly installment of RM200.

Is this a good deal? I am thinking since life insurance is the same with MLTA, might as well just upgrade my insurance plan

This post has been edited by MoneyMaker prince: May 16 2016, 09:08 AM

liability of 1 mil but only cover 400k ?

please dun mix up ur personal insurance with mortgage insurance .

Hi there, I have an AIA Universal Life, which I presume its a Life Insurance instead of MRTA or MLTA. Anyone panel expert here can help to confirm? By being a Life Insurance, I assume it is not transferrable, in case I wanted to buy a second property? Thanks!

I will need to find more about the content of your policy before I can comment abou this. Perhaps you can share some scanned copy of the policy

Anyone know what is the cheapest life insurance offer, to have 1.5mil coverage in the current market?

I know the difference between MRTA & MLTA.
However still confuse MLTA and personal life insurance. Technically what's the difference?

Any agent can enlighten me?

Thanks

If you have an investment linked life insurance, then it is the same thing.

Best,
Jiansheng

I have a housing loan of 450k and at the same time I have life insurance policy of RM150k
In this case I suppose I still need to get MRTA/MLTA?

I would say, there’s a need to top up the other 300k in MLTA or mrta.

hi ryan18, so long you get something to cover the mortgage loan of 450k (on top of anything you have now) will do.

So what happens to the MLTA policy ownership once the home loan has been fully paid and deed of assignment completed?
Will the bank automatically update the policy owner to the insured person? Or does the policy owner need to do anything to update the policy details?

I adopted the same approach. My housing loan comes to slightly below RM400k.

However, because bank "made" me take minimal MRTA for a lower interest rate, I have partial coverage from MRTA and the remaining loan amount I cover with life insurance.

Just an illustration,

Year 2023 - Loan outstanding RM400k, support with MRTA 400k + Life RM300k
Year 2030 - Loan outstanding RM300k, support with MRTA RM50k + Life RM310k
Year 2033 - Loan outstanding RM280k, support with MRTA nil + Life RM312k

Overall, I am slightly over insured. But agak2 only la.

I also don't have dependants, so I just make sure in case I pass on my parents didn't have to pay for my house. And I prefer to let them have the money first so that they can have the flexibility to decide what to do, instead of letting the bank control them.

Normally you don't have to assign that policy to the bank.

Once you have fully paid for the property, you can choose to either surrender the MLTA if you don't plan to take up anymore liability, or you can choose to keep it for legacy planning purpose.

Hi sifus, need your advice to enlighten me. I’m paying 3.6k premium per year for MLTA to cover RM500K. I was going to buy a house but then plan cancelled.
Is the premium too high considering it’s only covering 500K? There is no rider afaik by going through the policy. Insured til age of 99, but the value starts self-deducting at age of 45. I only need to pay premium til age of 45.

In this case, you've bought a policy that does not meet your need.

You'll be paying way lesser if you intention is to cover up to age 45 against debt.