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.

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

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.