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

thank you for all the advices. except for PBB, means that Banks wont mind if we dont buy the MRTA/MLTA from them.

btw, the reason i wants to have life insurance that covers my debt is i wants to attach it with rider as well. so i dont needs to pening2 about paying to several insurer monthly

Hi,
Refer back to your offer letter. If it is never mentioned there, means it is not compulsory. Sometimes is the banker wants to earn commission for insurance and simply say you must buy from them. As I know, insurance is optional for mortgage loan of most of the banks, including PBB.




Regards,
Gavin Lim fron AIA

I got MLTA offer by AIA (don't know is offer or what, agent just tell me the price, I have to take insurance as required in house loan offer letter)

premium RM1800 per year
House loan 110k for 30yrs

he say after 15yrs can take out money from MLTA, if want

I find the premium is quite high, is it standard?

If cover for RM110k only, should be a bit on the high side

Double post

This post has been edited by ilovecsk: Aug 6 2013, 08:44 PM

Thank you for your reply.
I'm 24 now and non smoker, do you think I can request lower, say 1k/year?

This post has been edited by ilovecsk: Aug 6 2013, 09:11 PM

Aia offer lowest premium at rm1800/annu , maybe u can ask the agent to increase the sum assured...

Hi,
Public bank is selling AIA insurance products. You should request the bank staff to give you the quotation.

RM1800 sounds like an investment linked product. If it's investment linked, not all your premium is paid for insurance purpose. First, your premium paid have to deduct company's expenses, then remaining premium will be used to buy your selected funds. After that, every month the company will cancel some units from your funds to cover policy fee and insurance cost. If there's enough funds to cover the costs, you may be able to enjoy premium holiday.

If it's investment linked, ask the staff whether he can put a portion of premium to A-Saver accountt so that you have higher premium allocation.

Regards,
Gavin Lim from AIA

Best deals come from AIA especially since merged with ING. Best of both agencies. Better products, more coverage.

Hi guys,

Introduce New INVESTMENT PLAN in Hong Leong,

- short term premium
- higher sum insured to be MLTA for your house loan
- investment return for mortgage settlement
- asset transfer & estate planning

If you interest to know in detail.
Please contact me for further information.

Many thanks.
Regards,
May Yong
012-521 3368

I personaly just take a life insurance with Prudential which covers all of my mortgages plus margins for future purchase and plus some money for the family. Less headache for me. The only diff is I think the money will be given to my wife to settle the house loan after I'm gone instead of the insurance company settle the mortgage.

kelvin2080,

It is STUPID to buy MLTA and / or MRTA. Only buy it if you are forced to by the bank. If you need more coverage, buy more life insurance.

Let's take a VERY SIMPLE example. Let's make both 300K.

1) Life insurance with TPD

If something happen to you, you or the survivor collect the money.

2) MLTA and MRTA

If something happen to you, you or the survivor need to sell the house in order to get the money!!!

So, you need to buy life insurance even with MLTA and / or MRTA. Or else, how can you or the survivor get the money??

MLTA / MRTA is for the benefit of the bank. It is not designed to benefit the buyer.


Now, as why do you buy life insurance at 21, that is another story?? You may not need it at all. Why do you throw money away at insurance just because it is cheap?? I guess someone has to be the dummy to make insurance agent rich.

Dreamer

Lets say the house loan at RM300k,

Total Payment of RM534,461.16 @ 30 Years @ 4.3%

So, how do we buy life insurance for the protection? @RM534,461.16 for 30 years??

This post has been edited by Petro-Canada: Dec 11 2013, 10:44 AM

Petro-Canada,

When you asked the WRONG question, you will NEVER get the RIGHT answer!!!

Who cares about the house?? It is IRRELEVANT.

The CORRECT question as per STANDARD life insurance question. How much coverage aka years of expenses needed for the survivor?? You may buy more life insurance because of ADDITIONAL EXPENSES due to housing loan. But, paying off the housing loan is not necessary the goal. And, that is the problem with MLTA / MRTA. You are FORCED to pay of the loan. Plus, you MUST buy the WHOLE COVERAGE for the housing loan which you may or may not need.

The survivor may or may not keep the house. The house cannot feed the survivor.

It is RISK versus COST of coverage.. You shop around to see how much it costs to cover X number of years.

Dreamer

This post has been edited by dreamer101: Dec 11 2013, 11:34 AM

Thank you...but,

LOL...how do you know it is a wrong question? You are way too ego, imho...

Petro-Canada,

<< LOL...how do you know it is a wrong question? You are way too ego, >>

Did you or did you not asked the WRONG question??

Yes or no??

Did I or did I not answered your ACTUAL QUESTION??

Is this EGO or I really know what you really want to ask??

I have been answering questions from many different kind of people for 20 to 30 years. Now, if I cannot ANTICIPATE and KNOW what you really want, I would had learned nothing from all my years of experience.

The HIGHEST LEVEL of customer support is ANTICIPATION. The ABILITY to know what the customer REALLY want even when they do not know it themselves.

See with your brain instead of your eyes.

Dreamer

LOL~ the topic's title first word is MLTA, "Mortgage", not just purely for life insurance

and, No, i just want know how life insurance to be purchased in lieu of MLTA and i didn't said that i don't have any life insurance for protection purpose

apparently your 20 to 30 years experiences + brain not so good ohhh

PM me if you need other option besides MRTA/MLTA... a proposal can be designed specially for you..

This post has been edited by spreeeee: Dec 17 2013, 05:19 PM

Hi, can I ask I have two housing loans;

House 1; I loan up to RM150K
House 2; I loan up to RM210K

I have bought life insurance of RM200K as agent proposed me when I have taken up housing loan. Should I take up another life insurance policy up to RM160K coverage; as same to match my housing loan amount of total RM360K?

Please advise.

Up to you actually. Do you need the RM160k insurance? Any insurance agent would tell you to get it, but do you need it or not? If you do, dont forget to ask for quotations from the others in the insurance thread here and there.

edit: 14 more days and this thread would have been left untouched for a year... you revived it...

This post has been edited by wild_card_my: Dec 3 2014, 04:49 PM

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.

How many more years to go before you are 45? What's your current age.

Check for sustainability of the policy too, till what age?

I see. So your suggested next course of action ? Cancel ? 😂

your agent is suppose to advise you since you engage for their services & advise.

Less than 19 years to go. Sustain til 75 without topups.

Likely the premium was based on sustainability till Age 75.

I see. How much less do you I think I will pay if the sustainability age is only up to say, 45 or 55 ?

Do get in touch with you agent.

Hi Sifus.. i just bought a house, but it compulsory to take MRTA, since this is under my company's loan & policy. But i just realized my loan tenure is only 26years. (But the property still havent completed yet) but the insurance coverage for 30 years. Is it possible, or i have been cheated by HR or the 30years coverage covers me even during the construction period too? Any idea?

Just realized that I still have a few hundred quota left to claim life insurance tax relief, can I buy a cheap MLTA for an existing loan? I dont mind about coverage

It doesnt matter wtherther the source of the housing loan is from banks or employers but the important thing to note is whether you or your next of kin can settle the outstanding loan in the event something happen to you.

Some banks do give the option to borrowers to have mrta or otherwise and if the borrower choose not to cover the loan, then if something happen to the borrower, the bank will proceed to auction off the property if the outstanding loan remains unpaid.

Mrta starts from the day the loan agreement is sign.

The MRTA will also cover construction, assuming you bought high rise that's 48 months (4 years) time to handover VP in SPA, that's why cover for 30 years (26 years loan + 4 years construction). MRTA starts coverage from the moment you signed loan agreement and includes period of construction. Construction not part of loan tenure because of HDA, so your tenure only counts from time loan is fully disbursed during VP.

This post has been edited by DragonReine: Oct 13 2021, 02:30 PM

Sounds like bank employee, I know most local banks have internal loan for staff, MRTA is compulsory for their loan usually 😂 I hear enough complaints about it

Some banks do provide MRTA cover during construction. Since the loan is from ur employer, I think they really scare so give u coverage during construction period.

You can.

MRTA ccan be included to cover the construction period as well hence it'll cost slightly more due to the longer duration of the coverage.

Well not saying it's right or wrong but if you just want to utilize every cent of it, I guess you could get some kind of life insurance to maximize it.

Yeah, it turns out that I could simply increase my premium in the portal

can i take the MRTA for the first 5 years then change to MLTA ? bcoz to get lower interest rate from bank have to take minimal MRTA