What is the calculation of MRTA & MLTA?
i failed to get the calculator in google about it.
Does anyone know?

Let say property RM600K?

You need to provide age, term of loan, the base rate an whether you require Critical Illness coverage before anyone can give you a calculation.

wow, seems like complicated
do you think can roughly to calculate?
28 yrs old for 35 yrs loan

Assuming Base Rate is 4.5%. MRTA for 30 years coverage (sorry, software only allows calculation of coverage term up to 30 yrs only) is RM19,220 (single upfront payment). Premium paid is not returnable. If MRTA is financed into a loan, actual MRTA cost over the loan period could nearly double the RM19,220 quoted.

For MLTA with Death and Total Permanent Disability coverage is about RM6,066 a year. At end of 35th year, guaranteed return of RM271,800 vs Premium paid of RM212,310.

For MLTA with Death, Total Permanent Disability and 36 Critical Illness coverage is RM13,500 a year. At end of loan tenure on 35th year, projected cash value of between RM800k to RM1.1 will be returned.

Disclaimer : This is just a very basic calculation - Please contact a qualified agent/banker to conduct proper health condition fact-finding and actual needs analysis to come up with a customised plan that meets your budget and coverage needs.

This post has been edited by weissPC: Mar 28 2016, 05:59 PM

Hi

Please provide your age, gender, do you smoke ?

What's your loan amount ?

Also please provide your email and contact info if possible

PM done

Hi bro, for your both option for the MLTA, meaning the annual payment is for all 35 years? Sorry I am nubis in the MLTA term. Also, during the period, are we allow to cancel the subscription? Or must serve a few years down the road. Also are we entitle for invested partial payment? Please advice.

MRTA - you will pay 1 lump sum payment to the insurance company for the 35 years coverage

MLTA - you pay monthly instead of 1 lump sump.

The coverage serves as a protection during your loan tenure.

You are entitled for certain cash value in the near future should you cancel off the MLTA, for MRTA, you get certain pro-rated premium refund.

Feel free to ask me any further questions

MRTA can be more flexible compared to MRTA, if you are willing, you can pay for the whole 35 years if you choose to do so, or you have the option of stopping at 20th year and let the plan self continue because it have accumulated cash value. It all depends on how you structure the plan and what are your requirements.

You can also choose to withdraw when you no longer need the coverage, for example when you sell the house or when you are financially free. The MLTA plans have breakeven point of between 12-20 years depending on the plans chosen and also your age when you subscribe to the plan.