So let's say if you bough a 1.5 mil house at 30.9 yrs old.. and you took 40 yrs loan (I know now is 35 only).

Then at the 39th years serving the loan you die due to ageing (normal case la.. as male always die earlier).

So, the bank will pay your family 1.5m? Means they get 1.5mil + a house?

So they best time to buy in a few is @30 y/o with 40 years loan + MLTA?

So MLTA insurance us always better in this case?

(Sorry la, if you die 71y/o you lose 1.5mil)

This post has been edited by InF.anime: Sep 10 2014, 02:03 AM

For MLTA, whether you are gone at year 1 or year 39, your beneficiary will get your insured amount, says RM1.5 mil in this case.

If you buy the MLTA at older age, the annual premium will be higher.

well, i normally would get mlta/mrta at 1/4 to 1/2 duration of the loan rather than taking full duration of the loan.

what is the different? by that time the premium will be much higher cz of aging.

As ur loan term is say 40 years. When u died at 71 u already fully settle ur loan. But another good thing about mlta is u will get back wut u have paid for during the 40 years in the event u r still alive in 70 years old.

take MLTA like a life insurance policy.. then you will be understand them better.

MLTA for rm1.5m would not be cheap for sure.

+1

MLTA will costs you a bomb.

There are a lot of insurance packages in the market, just do some study and find the one that suits you most.

what i meant is to get the MRTA/MLTA at shorter duration as compared to the loan duration. ie a 40 years loan, taking only mrta of 8 years and settling the loan within the duration.
the insurance cost much higher when duration is longer.

At 39 years, yes your family will get 1.5mil and a house because your loan balance only left one year to pay and assume it can be neglect.

If you die at 1-10th year lets say, your family only get a house because they need to use the 1.5mil to pay off your loan (they can keep some balance after pay off the loan because your loan will be >1.5mil). Or they can keep the 1.5mil cash and use it to pay the installment slowly. Of cause do note that 1.5mil will not enough to pay for remaining installment tenure due to interest.

You may click my siggy below to get some example of different MLTA quotation for comparison with scenario.

If you get MRTA for 8 years, your mrta coverage table will follow the loan balance as of a 8years loan tenure, so the mrta will be way below coverage if you die at 5-8 years.

For example
Mrta at 8th year coverage only at rm100k, but your 40 years tenure 1.5mil mortgage loan at 8th year can be around rm1.3mil.

How to make sure your family have 1.2mil to pay the balance when it's happen?

Settle a 1.5mil loan in 8 year, you are talking about paying rm19k per month or rm230k per year just for paying installment. I believe not much people able can do so even they can get 1.5mil to approve.

Understood...

There is MLTA that can get back what you've paid as early as 11 to 14 years depend on entry age, after 11 year you will getting more then you've paid and it's guaranteed. No need to wait 40 years to get back.

Of cause it might cost higher but we can treat it as saving account with free life coverage. If something happen you get rm1.5mil in this case, if nothing happen you can get back your all the money paid in full just after 11year.

It's good if you have some spare money. 11 to 14 years can consider short duration to achive compare with mortgage loan tenure.

ah ic....

cause i was told by my banker that mrta would cover most of the loan in any event of death or tpd, if it covers according to an amount specified by the duration, then i think its fair to go for longer duration of years.

and i am not asking you to pay 1.5million within 8 years, hardly not many people is able to do it in malaysia. you have to think and have a good finance planning ahead of you (mind you, i did not state the amount there in my case here)

have a good finance plan and projectahead, of when you can settle the loan within if you plan to.

QUOTE(InF.anime @ Sep 10 2014, 12:35 AM)

So let's say if you bough a 1.5 mil house at 30.9 yrs old.. and you took 40 yrs loan (I know now is 35 only).

Then at the 39th years serving the loan you die due to ageing (normal case la.. as male always die earlier).

So, the bank will pay your family 1.5m? Means they get 1.5mil + a house?

So they best time to buy in a few is @30 y/o with 40 years loan + MLTA?

So MLTA insurance us always better in this case?

(Sorry la, if you die 71y/o you lose 1.5mil)

MLTA Protection Remain
MRTA Protection Reducing

MLTA Fully covered outstanding loan amount and Additional protection plan to family
MRTA Insufficient to cover whole out standing

MLTA Serve as for any new purchase or refinancing in future
MRTA Policy Terminated

MLTA can use cash value in acc to settle your loan earlier
MRTA not applicable

MLTA premium maintain
MRTA serve more premiums when finance by bank. Interest is tied up withBLR!! At the end premium Burn.

Regard
Fish 0169661681

It's misleading to say MRTA insufficient to cover whole outstanding. It depends on the coverage you bought. If MRTA policy is terminated earlier (says because the loan is settled earlier), you can still get back the "unused" premium.

Some more MLTA can transfer to another Property
But MRTA cannot!

Regard
Fish 0169661681

Boss out of curiosity, how much is the MLTA Premiums for TS case.

Assuming of course, no loading due to health issues.

MLTA Premium for RM1.5 mln Policy for 40-years assuming aged 30 and non-smoker

you should ask for same scenario, the cost of MLTA and also MRTA.
then forummers can really tell which to go for.