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.

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?

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.

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.

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

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.

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