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.

Meaning that if the borrower died of accident, then the insurance company settle of the house loan?

---

Added on June 26, 2012, 10:11 pmWhat if I am serving loan for PBB then refinance with Standard Chartered Bank. Can the MRTA/MLTA I bought at PBB use for standard chartered bank for the same property? from my understanding can.

This post has been edited by Seremban_2: Jun 26 2012, 10:11 PM

Check with your bank on this....

If I am not mistaken
Maybank's Etiqa will not allow this

But PBB's ING seems to be okay if I am not mistaken. Just change the beneficiary

This post has been edited by davidlow7: Jun 26 2012, 10:31 PM

Hmm, it is quite risky though. If say a person pass away, next kin need to fully paid off the mortgage then they only can claim the property. Or else, they might face issue selling the property.

If mortgage is not served, bank will lelong the property and since the price might be much lower than market value, next kin might as well get nothing too ;(

Yes. Usually MRTA/MLTA covers death and tpd. In the event of death and tpd, insurance company will pay the bank and bank will release the title to next kin provided that a proper will is written.

Hmm, suppose can but subjected to SCB loan terms and condition.

However, i would like to highlight some issue.
Usually we refinance with a higher value. However, the MRTA reduces with time. Hence, kindly make sure the difference of coverage with the outstanding loan amount is manageable by next kin to avoid transferring issue.

if u want BLR - 2.4% then yes. but can opt for the minimum coverage

Can you please explain what do mean "you can opt for the minimum"?

My loan with UOB is RM440,650 (75% loan). What is the minimum MRTA required to qualify for the best loan rate?

Also, I would like to know if MRTA premium is just a one-off small amount payment?

5 years, one off payment

As per what ecin mentioned above... But check with your banker for more accurate information.

Sorry asking some noob question here, what do you mean by attach to property?

Does MLTA also attach to property?

If I buy MLTA, will they be any refund after i sell the property as I had read this link

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

it stated 'at the end of tenure, house owner will receive a total premium through out the tenure'

This post has been edited by hoks: Jul 22 2012, 07:12 PM

MRTA is attached to your property meaning, it is not transfereable i.e. if your loan is for 40 yrs, it will tie up to your property for 40 yrs non-transferable. on the other side, MLTA does not tie to your property, whereby if u sell the property much earlier than say 40yrs loan, you'd be able to transfer the MLTA to your new property (subject to price variance).

Understood now, thanks for your explanation.

some bank compulsory, some bank optional

---

Added on July 26, 2012, 10:00 amsome bank compulsory, some bank optional

This post has been edited by RedBishop: Jul 26 2012, 10:00 AM

If I'm getting MLTA, can i buy it at a later date after i buy the property? Or must i buy it together at the same time?

Most banks persuade us to buy as it is actually bring benefit to us.

Question, if I refinance to other bank, will the MRTA void? Or carry together to the new loan?

Yes, you can buy it at a later date.
Buy you are bearing the risk, ie if anything happens to you now, bear in mind that your family is going to inherit your debts...

also, another disadvantage is that if you buy it at a later date, you have to pay for it separately... whilst if you buy it together during application, you have the option to finance your MLTA into your loan...



Cheers!

simple yet useful..
thanks

what is the difference if i buy the MRTA from insurance company instead of the bank? the pricing is the same right (for example buying directly from Great Eastern versus the bank offer Great Eastern MRTA)?

This post has been edited by kiwi_cream: Nov 20 2012, 10:42 PM

I think u mean MRTA? MLTA can't finance into loan, right?

I mean MLTA... can finance partially (5-10 years) into the loan.. continued by the normal monthly premium thereafter..
Not all banks can do that though... i only know 1 bank which can thus far.. ;-)

is there necessary to buy just for 3 years only and if i want to sell it after 3 years?

if you don't plan to buy... bear with the risk that if something happens to you, your family would be left with your huge property debts, and forced sale. it is easy for someone to share with you - don't buy... but if something unfortunate happens, your friends who gave you that advice, wont be around to help you weather the storm...

my justification of why need to buy MLTA (even more so in investments), is that because you plan to buy and sell and buy again several properties... that is why you choose to buy one MLTA, which can be transferred from 1 property to another property... as well as locking in the rates at a younger age, which means cheaper premium...

one man's food, another man's poison though... depends on your preference!


cheers!

MRTA / MLTA can be waived by most banks. Ive got 2 properties under Maybank and CIMB without it and i got good rates at that time. CIMB gave me BLR-2.4% with no lock in last year. Im in the process of buying 2 properies now and most of the banks im dealing with dont have any requirement for compulsory MRTA/MLTA.

If ure buying for own stay and dont intend to sell within 5 years, then get MLTA. If ure buying for investments (as many of us are), then dont bother with either. If you do want to get, then go for MLTA not MRTA since its charged to your name and not the property thus can be used to cover many properties.

Thanks for your advice.

I am a newbie and dunno the MLTA can be transferred~ Does MLTA only applicable to one property? Let's say i buy 2nd property, do i need to buy another MLTA for it?

---

Added on November 24, 2012, 10:53 amOkOk!! understood already~ Thank you

This post has been edited by orangesaw: Nov 24 2012, 10:53 AM

Hi,

Assuming you bought MLTA of RM800k for a RM800k property 1. Over 20 years, you didnt buy or sell any other property... so now loan outstanding may just be RM300k... Now you want to buy a second property of RM500k...

So it means that you can actually choose not to buy a second property, because u have adequate coverage (ie RM800k) to cover your total property debts (ie current RM300k debts + new RM500k debts).

Hope the above helps clarify!



Cheers!

Even my banker didn't explain well...

Thanks for the sharing

Yea, thanks for clarified all of us

Sorry to barge in an old thread, but I would like to get some clarification. Please bear with my queries.

I am taking a loan for 35 years. Considering the fact that the budget is already tight, I am opting for MRTA as it is cheaper than MLTA.


(1) How many years should I opt for? How to justify the number of years I should take.

(2) Seems by default the banker tell me the price/mth for MRTA, meaning they finance it under loan also resulting in more expensive. Is it commonly paid in full or serviced monthly under the loan?

For eg. they informed me the MRTA is RM16888 for 35yrs, but RM75.91/mth for 35yrs. This means RM75.91*12*35=RM31882 which is twice the amount.

(3) What is the interest rate for in buying MRTA / MLTA?

(4) Is it necessary to get either one. Can I purchase a life insurance instead of MRTA/MLTA that covers the exact loan amount instead?

(5) My understanding is, buying insurance either MRTA/MLTA is to cover me in case of death or TPD. Can I not buy any insurance and in the following scenario:

What if 1, 5 or 10 years later, Im involved and either case death / tpd and property appreciated. Can my next-of-kin sell the property and cover the remaining loan while also profit from the appreciation? The consequences is losing the house, that should be all right?

The only reason buying MRTA / MLTA is to ensure that I still own the house in case of death / tpd.


Information I referred to
http://www.imoney.my/articles/mrta-vs-mlta-need/

This post has been edited by Malformed: May 16 2014, 10:36 AM

I just want to ask can I cancel my MRTA? It's had been in force for more than 5 years. Since I have another life insurance was thinking of stopping it. My MRTA insures both my wife and me. I bought my house in 2007 and that time the bank need me to have MRTA. Thanks for the info

Yes, you may surrender MRTA anytime and get back the remaining value that still have. The surrender value should be written in your MRTA's policy.

What you need to do it just bring the MRTA's policy back to the insurance company and surrender it. To save your time, try to call up the insurance company's customer service and check with your MRTA's policy number first. Then ask where you should bring it to surrender it.

Sorry I think I mistaken my MLTA as MRTA.

Sir, thank you very much for your explanation I just check back my house HP contract from OCBC it states

The bank may finance or part finance the premium payable for the MRTA policy subject to the following condition:
a. The MRTA must be taken from an insurance company acceptable to the bank.
b. only the basic premium will be financed or part financed by the bank. If the insurance company requires a loading or en excess, you shall bear the cost of such loading or excess.
c. you must assign absolutely all rights, title and interest and benefits to the MRTA policy to the Bank with the Bank named as sole beneficiary: and
d. You must comply with the conditions required by the insurance company and the premium for the MRTA must be paid within the time stipulated in the Letter of Offer.

My MLTA is from HLA and I'm paying the premium monthly, mature date is Dec 2027 (I started since 2007) Insured amount is 104,000. But my MLTA premium is fully paid by me and the bank did not partly finance it since it was not in my loan. So if I terminate the MLTA with HLA will I breach the contract of the bank as stated above?

Or I need to call my bank 1st to ask them if my MLTA insurance is tied with the Bank?

Thank you for your time and respond really appreciated it.

This post has been edited by TitanRev: Jun 12 2014, 12:07 PM

The condition is only apply to MRTA policy, but even so, mrta can be cancel anytime. It's only let you know the condition for the finance if you finance the mrta premium.

For MLTA, the beneficiary is not the bank and given so, you are the policy owner and you are free to cancel or surrender the policy anytime too. But please check the policy have any surrender value or not before you do it.

Maybe you can pm me the product name of your MLTA that intend to cancel for more detail condition?

Thanks again sir for your expertise in this. I have gone through a discussion with my wife again and after googling on the web I found that we will can get back our paid premium after we complete the tenure of the policy. Which is still 13 years to go. But 1 thing I do not understand is I don't see any dividend being credited to my policy as that time the HL agent said if got dividend will be shared to policy holder?

For Your MLTA, there is no dividend as the policy is non participate term policy. The surrender value is guaranteed and following the value chart in the policy.

I think your agent mistake about it ady.

without MLTA/MRTA, i get BLR-2.4
with MLTA, I get BLR-2.5 (but monthly installment additional rm110)

should I purchase MLTA?

You need to check how much you need to pay for the MLTA to get a good comparison.

If the MLTA you get is over priced or you may get better coverage with same amount, then the extra 0.1% might not worth to get.

For example if you saved Rm50 from the extra 0.1% lower interest, but you pay extra Rm100 higher for the MLTA that you can get with same benefit, then in this case the 0.1% is not worth for it.

If you don't mind you may pm me the MLTA quotation you get and i can do some comparison and analysis for you to decide which is better option.

if we purchase MLTA/MRTA with bank, will it get forfeited if we refinance our property (ie to get better rate or to get lower installment) in 5-10 years?

Yes it would. That is why most of my Housing Loan clients opt for MLTA, the insurance is owned by the payer.

In MRTA, the policy is absolute assigned to the bank. You pay, but bank owns the policy, payable to your loan account. You can't do anything about it since it isn't yours anymore.

With MLTA, you can bring the policy to which ever house you want to buy using a mortgage.

This post has been edited by wild_card_my: Dec 17 2014, 05:56 PM

But my banker said even mlta also would be forfeited if we do financing within the coverage tenure. ...

oh ok. i thought if take joint mrta, if husband or wife died, i initially assumed need to pay half of the condo cost ?

It depends. You can buy each half half or both buy the amount of the loan. Example, loan 500k and both also buy 500k coverage for both instead of 250k each. Of course you have to pay more then lar.

This post has been edited by GreenSamurai: Dec 17 2014, 07:21 PM

Actually this will be like buying mrta for the sake of buying it.

If say husband and wife. If say wife earns more than husband, then husband passed away, wife can still afford loan easily, but if husband alive but cant afford the loan, in this situation, i say the person to buy mrta is wife.

At the end of the day, the purpose of insurance is to protect from the loss of something, really dont buy for the sake of buying...

It's worrying why you would need to worry about possibility of refinancing in the first place.

I dont work for banks so i dont know how the loan is linked to the mrta/mlta.

In actul fact, there's no hard rule that says this mrta can only tie to this loan. Mrta/mlta is designed to match your housing loan outstanding. Problem for this is, in mrta case, the matching fails when there's refinancing. But, just because it doesnt match, mrta purpose is still there, which is to assist to cover the loan balance upon death of assured (borrower in this case).

Analogy i can think of is... Food. Just because one is only full after eating two cups of rice, doesnt mean that 1 cup of rice is useless, just means it's not enough.

I think bnm will be on to the insurance company/bank for forcing customer terminating mrta/mlta because of refinancing. But if actual bank practice is as said... Then... You might want to consider other insurance policy.

Not at all. I'm not a banker but I broker for 5 banks. None of them force you to take MRTA and all my clients take MLTA.

MLTA would not be forfeited if you do refinancing, early settle, or sell the house outright. Some bankers... do have their commission tied to selling insurance, which may be the source of this "confusion"

Hi all sifu do you know how much is the mtra for a 750000rm loan?

What is the age of the person to be covered and the tenure of the loan?

You need to give more details such as

Your Age, Gender, Smoker/Non-Smoker and tenure of MRTA

But off the cuff, for a 20-year tenure, in range of RM20K+/-

Hi 35year old, non smoker, 30 years. By the way is it a one time payment of 20k? And what happened if i sell off the property? Tks

Okay, 35-yrs old, a bit cheaper.

The MRTA Premium is a single premium, meaning payable one lump sum and Banks are willing to finance it

If you sell of the property, you can get a refund / rebate of the remaining premium but it will not be on a straight line basis

Noted. Your calculation for MRTA is as shown below. However, keep note that all banks will have their MRTA premium calculated differently. This is just a guide.

MRTA is always paid in 1 lump sum; the only differences is between you financing the cost into the loan VS you pay for it by yourself.

Also, I can help you with MLTA. MRTA is usually financed into the loan since you have to pay it in lump-sum, thus will incur interest. It is also absolute-assigned to the bank, which means the bank owns the policy although you paid for it; the insurance payout/claims is payable to your loan account though, so you (your beneficiaries) still own the house that is not encumbered (mortgage fully paid off) anymore. MLTA is yours, that you can carry it wherever you are, not tied to any loan facilities at all. In the even of death, TPD, and critical-illness, the claims are payable to you and/or your family to decide whatever you want to do with that money.

Usually it is between paying off the mortgage in full VS pay it as normal and reinvest the money elsewhere. It is up to you, unlike with MRTA



This post has been edited by wild_card_my: Dec 18 2014, 12:24 PM

It's not a must, but banker will tell u loan hard to be approved without it.
By the way, just buy it la...anything happened also wont affect family wife children..

Hi Sifu, based on your quotation, the profit rate is 4.50%. This is the Interest Rate right? Current BLR is 6.85% less 2.40% = 4.45%

But there should be a buffer right, perhaps say up 2.0% over the next 30-yrs. If Interest Rate is pushed up to say 6.50%, what would be the MRTA Quotation?

Yes, it is the interest rate (Islamic loan calls it profit, hence, profit rate) of the housing loan that you are getting; and the calculation is only used as a guideline. It cannot be used without any confirmation in the LO. The MRTA received by the customers will depend on a lot things, and each customer will have different numbers, just like how each customer is quoted different interest rates for their housing loans.

1. To answer your other question, if the MRTA is financed into the loan, the premium paid does not change and will not increase, but the repayment for the cost of that MRTA premium (now part of your outstanding balance) will change according to movements of the BLR (or BR in the near future). But this also means that the MRTA would not be able to cover the outstanding balance, as MRTA has its own curve of claim-payable that it follows. If your loan balance repayment follows a different curve, in the event of DEATH, there may still be some balance that the beneficiary needs to pay.

2. Also, let it be known that when quoting for the MRTA premium, the calculation takes into account of the current effective interest rates for the housing loan that you are offered. For example, if the client's interest rate is 6.5% and not 4.5% as quoted, the single contributions are increased to RM 48,251.00 (MRTA cost financed into the loan) and RM 45,334.00 (MRTA cost NOT financed into the loan)

But why? Because MRTA tries to cover your outstanding balance, and the earlier years of your tenure with the loan is the costliest parts of the MRTA because the outstanding balance is higher than in the later years (as you have paid off bigger portions of your outstanding balance). However, if your effective interest rate is higher, the curve to finish paying off your outstanding balance would be different than if the effective interest rate is lower. Hence, higher cost of the MRTA premium.

I hope I haven't confused anyone. MRTA is... in my opinion, a minimal type of insurances, it has too many limitations. MLTA is much much more flexible for just a little more.

This post has been edited by wild_card_my: Dec 18 2014, 01:00 PM

Hi for mtra do i get back any return after the loan? What critical illness does mtra covers?

MRTA? No, you get nothing in the end of the loan tenure. Typically, MRTA also does not cover ANY critical illnesses and in many cases, it does not cover any total-permanent-disability derived from a critical illness too.

MLTA? It depends on who designs your MLTA product, you can or cannot get something back at the end of the tenure. However, as a financial planner on the biggest scheme of things, I cannot vouch for putting any investment in the MLTA. Minimize the premium. MLTA covers TPD and can cover critical illness (if you choose this rider)

Anyway, here is my illustration of the MLTA vs MRTA. This was done like 2 years ago so if you have any questions, dont be afraid to ask





This post has been edited by wild_card_my: Dec 18 2014, 01:22 PM

You guys can have a look on my thread below and there is many MLTA and MRTA quotation with different scenario or age and loan amount. You can get some picture and have the idea for comparison.

https://forum.lowyat.net/topic/2807168

So for MTLA the minimiun is 15 years before i can surrender? What happens if i sell off the property before 15 years?

Nope, with MLTA you can surrender it anytime. Remember, with MLTA, the policy is attached to you, it has nothing to do with the mortgage that you have. You can sell of the mortgage/property, refinance it, or early settle it; and the MLTA would still stick with you.

I understand that MLTA/MRTA may not be so important if we buy a house for investment, correct?

However, if the house is for own stay, do we really need to buy MLTA/MRTA?

if we are not sure we will use it for own stay/sell/rent it, should we top up MLTA/MRTA on our loan?

MRTA stand for Mati Rumah Tetap Ada.

So for own stay, it highly advisable to buy either MRTA or some form of MLTA.

If you are not sure whether its gonna be own stay or long term investment,then buy some form or Regular Premium MLTA.

you can choose to stop when u are going to be sure it's not gonna be for own stay. The premium paid might be burn but cheaper than u finance the MRTA or MLTA into the Loan.

But wait, some ppl say that if you finance the MRTA or MLTA into the Housing Loan, you cannot terminate the MRTA or MLTA unless your Loan is fully settled.

This post has been edited by cfa28: Dec 22 2014, 03:09 PM

If you finance the MRTA or MLTA into the loan,mean the bank borrow you the money to buy the coverage of you,but benefit is for them, you will need to sign the absolute assignment and assign the MRTA or MLTA to the bank. Which mean the life assured will be you but policy owner will be the bank. So you have no right to cancel the policy except you do settlement for the loan including settlement by refinance.

This is also to prevent people getting cash out by finance the MRTA. If everyone finance MRTA and after a month cancel and get back the surrender value, mean they will get cash out from the mortgage loan already. It can be big money as some MRTA premium can be +-Rm100k.

But if you did not finance the MRTA or MLTA into the loan, then you may choose not to assign the MRTA or MLTA to the bank. Then you have the right to continue or terminate the MRTA or MLTA anytime.

means not advisable to finance the MLTA into our loan?

There are many types of MLTA, some of the can be financed into the loan while others, cannot. The ones that can be financed into the loans are usually by the insurance companies that have ties to the bank you are applying for.

For example: Great Eastern's MLTA product can be financed into OCBC's housing loan.

As an insurance agent as well as mortgage broker, I can say with great confidence that you should not finance the MLTA into the loan. Not only you are incurring interest that way, but you are also limiting your MLTA mobility. MLTA is supposed to be attached to you and only you, not absolutely assigned to any party - so you can take it along with you when you need to settle the current mortgage and bring it over to a different one.

It's depend on the condition. If the cost of MLTA is cheap enough and you can get better rate from finance the MLTA, i will say why not?

For example:

WITHOUT Finance the MLTA into loan
Loan = Rm500k
Rate = BLR-2.4%
Tenure = 35 years
Monthly installment = Rm2350.83

WITH Finance the MLTA into loan
Loan = Rm500k
Rate = BLR-2.5%
Tenure = 35 years
Monthly installment = Rm2320.05

Different = Rm30.78

If the MLTA is only cost Rm7000, with BLR -2.5% for 35 years. It's only cost Rm32.48 per month.

So basically if you finance the Rm7000 MLTA into loan and get the BLR-2.5%, you only pay extra :-
Rm32.48-Rm30.78 = Rm1.7 per month.
Rm1.7(one teh tarik) per month for MLTA coverage, I will say why not in this case.


But if the cost of MLTA if much higher or the MLTA plan that the bank offer is much expensive, it might not worth for it because you have no choice but to choose the plan from the panel insurer of the bank only.

As sometime you maybe can get much cheaper or better benefit MLTA plan else where. So it's better to get more quotation from different insurance company and do the comparison which is the best choice and value for money.

And also for MLTA, we can choose to pay by monthly or yearly and it's free of interest. Why do you want to pay a lump sum by finance the MLTA premium into the loan and let the bank earn more interest from you?

You can choose not to pay for the MLTA premium in hard time, but you can't miss to pay the loan installment or else many problem or troubles will come to you.

So if you have the choice, will you want to finance the MLTA into the loan?

This post has been edited by onnying88: Dec 24 2014, 02:25 AM

I am getting a 800k myr loan... why i am quoted only 6000 myr+ MRTA (1 time payment) for 10 years by the bank? Can i confirm MRTA is a one time payment?

Hi all,
I planned to take shortest (10-15 yrs) MRTA for best blr only, I understood that it's reducing balance method and the premium isn't enough to cover the rest of loan AT ALL in the "end" of mrta.. (let's say 9-14 years, MRTA will only covered peanuts for my loan left amounts)

but this's because I will not hold this property too long (until the end of loan), it's a single name property so I never have thought to take it 30 yrs. (Which is expensive and pointless imo)

Am I thinking right?
Or I've been overlooked another necessary factors?

Please advise and have a nice weekend.