Even if you take another insurance... the beneficiary is still the bank, because your estate will have to pay your debts in the event that you pass away before loan finish.

Once you took a loan, they own your assets to that amount. Insurance name whoever as beneficiary also, they don't take priority over the debt you have accumulated.

The loan officer for UOB explained to me when I asked that nominee for loan-related insurance must be the bank. However I got it reduced to very small sum because I showed that I already have my own life insurance worth roughly the total amount of loan existing. Those of course the beneficiary is my loved ones.

But larger picture, your debt to the bank lasts after you pass away, and the property belongs to the bank until paid off. When you pass away, the bill comes due and must be paid by your estate in some manner. The insurance means its paid in cash. If the insurance passes to your loved ones instead of the bank, they do not have a loan relationship with the bank and will have to either redeem the property for remainder owed or renegotiate with the bank for payment terms. Excepting joint loans of course.

Hence in my view the insurance beneficiary is always the bank as they hold the title deed. Assuming of course that you want to keep the house (which would almost always be the case for own stay).

I will pm u my agent?
Yep, factored it in and it's still just ahead. More so given I plan to pay down the pricipal aggresively. Currently I am paying an additional 3k to lower my principal. The swtich will see my installment be RM700 less, which I intend to use to pay it down even more.

Plan is to cut my overall installment short, with this I'm finish it up within 10 years rather than the initial 15 years.

I locked the rates at 3.78%.

Anyone knows what OLTA and how does it work? This is from specific bank only.

Others are coupling with MRTA / MLTA which seems more expensive.

500k 30 years with
OLTA: 22k for 300k coverage for 25 years
MRTA: 25k for 400k for 30 years

The rates are ranging from 3.85-4 so tempted to pick the lowest but it comes with the OLTA. Can’t find much info about it.

What about CLTA?

Hi, wanted to ask if banks consider your rental income when calculating your DSR?

Want to calculate how much property loan that I'm eligible for.