Dear all,
Recently when applying for my loan, my bank agent mentioned about buying a MRTA / MLTA for the loan. As my property does not cost much (<RM200k), must I buy one?

Are u talking loan yourself only?
Me and my wife bought a full MRTA 13K (20 years) for both of us.
If i pass away then my wife don't need to pay a single sen at all. haha.

It depends on the loan that you take up .. some banks and some loans requires a compulsory purchase of MRTA/MLTA, but some don't need it.

You should check with your bank.

Almost all bank will require you to take MRTA/ MLTA, some sort of cross selling la.

How old are you ts ? because MRTA rate depends on age.

No, you can find some banks they don't force you to buy (anyway, normally different rate if you don't buy MRTA).
For your family protection, it's always good to buy.

so far all my bankers say optional..of course they'll encourage u to take but it's up to u i think

@ecin

If you dont take, you will get blr - very bad rate

Yes.
As far as I know, quite a lot of people they didn't buy.
Personally, I never missed.

I think BNM has left it to the banks to decide if mortgage life insurance is a requirement for a loan. Ask the banks to show u the BNM rules of lending if the bank says u must buy for a loan to be approved.

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

can try this , quite useful

if you plan to pay loan for more than 20 years, then buy.

if you plan to sell off after 3 years, then dont buy.

if u already have life insurance/CI that can cover the total amount of ur loan (since urs <200k)...i don't think u need to take the MRTA...

depend on ur bank.... it should be optional, but my friend is compulsory...
fyi, they can finance in ur loan also.. ask ur banker...
n u can buy it later if ur hav tight budget now...

Is not a must for MRTA/MLTA. But, if you taking a loan, and if anything happen to you, your family have to bear the liability. For future, is better buy a insurance for it. Since <200k, not very expensive for yearly.
MRTA decrease your sum assured every year and MLTA is maintain the sum assured and you could get back the money when you surrender this policy.

Just for sharing, MRTA got surrender value also, in decreasing manner year after year

Yes. Sorry that i forget this point. ^^

Just look at the terms and condition whether it is compulsary or not to get MRTA from bank. Or else you can opt for life insurance coverage/MLTA from insurance company and assign to them if they require borrower to assign the policy.

It is always good to have something to cover your debt in case of unexpected event.

It shouldn't be compulsory... it is only compulsory to get lower -BLR. You can opt for minimum.

If you already have any existing life insurance that have some sum assured, you can choose to only buy the remaining amount to cover the rest/

Let's say you have a current insurance Sum Assured 100k for TPD/Death, and your property is 200k. You may just buy another 100k life insurance to work as MLTA. Combined together you will have 200k, it is enough for your loan amount. Can add in another rider for Critical Illness.
You can always buy more if you want, there is no limit since the beneficiary is on your choice, and how they want to spend it whether to pay for the house or others will be their choice. At least we know that we are not leaving a big burden to them in the event .... *touch wood*

Else if you are buying MRTA, you may need to do some calculation and ask what is the % set. Usually they are adjusted at the range of 6-8%.

The beneficiary has to be the bank for MRTA. MRTA usually covers only TPD/Death and not CI. You may need to double check with your insurance agent.

Hope that clears.

Hi.. Would like to ask for opinion here too. If we buy a house for investment, do we need to get a MLTA or MRTA? I mean if something bad happens, we can always sell the property right?
I think if the house is for own stay, then we must get a MRTA/MLTA.
Please correct me if I am wrong.

If you plan to sell your prop once it has reached your target price after a few years then better forget about MRTA because it attach to the property. If you wanna insure your family in case something happen to you, just top up your life insurance will do.