What is CLTA? Is it same as MLTA?

RHB bank ah, it attached to tokyo marine.
i think if u cover 300k, throughout the tenure of your coverage it will cover 300k, unlike MLTA is reducing year by year.

Yes, RHB bank. How about the cash value?

not so sure, i also jz signed, did not asked much, i jz want cheaper rate that why sign for it

Anyone have more info on this? Want to know as well

I just signed also with RHB under Tokio Marine. Mine is called GCLTA - Group Credit Level Term Assurrance. Reason I chose this compared to MRTA or Investment link insurance

1. This is level term coverage meaning the sum assured does not reduce over time. Example if the housing loan = 1mil and sum insured = 1mil at year 1. After paying the housing loan for 20 years my remaining loan let's say balance is 100k. Then year 21 something happen to me I die. The insurance will compensate 1mil. If you take MRTA insurance will only cover the remaining 100k no extra.

2. CLTA can be transferred to the next property if you sell of your current house. MRTA not transferable and you need to pay premium all over again for a new property.

3. This is not investment link so there is less risk. Investment link got risk to lose your cash amount and end up need to top up

4. There is a surrender value meaning you can get back some money if you surrender the policy

CLTA is basically a hybrid product of MRTA and MLTA. The main benefit it takes from MLTA is that it offers a fixed protection over the tenure, though there are still significant downsides to it, similar to MRTA, such as it not being transferable.

In summary:

MLTA:
- Has cash accumulation
- Transferable
- Can select beneficiary
- Coverage can be adjusted according to needs
- Flexible

CLTA:
- No cash accumulation
- Not transferable
- Coverage is fixed
- Beneficiary is bank
- Not flexible

Whether to choose the CLTA or MLTA will depend on your situation, but if you can support it, MLTA will be a better choice in the long run, especially if you buy another property later.

Cheers.

If what you mentioned is correct, the only different between MRTA and CLTA is the coverage is not fixed for MRTA and is fixed for CLTA. Am i correct to say so?

The sum insured on decreasing value for MRTA vs the sum insured remain the same amount for CLTA

Ya, should be this way i think.

According to rhb banker. Yes it is.

why is my rhb banker never provides me the options, she just tied my application to mrta and made decision for me with the excuse of, if this way, the int rate will be lower.

and myself have to do all the asking and exploration to know my options, is this a sucker banker ? or it's normal?

now im in unclear state, since the processed already success and dontknow if i able to switch to mlta or what

Hi,

While I can't comment on this specific case, generally in house bankers offer MRTA and don't have much incentive to promote MLTA (if they have it), which might explain why you were only recommended an MRTA. Outside consultants (such as myself) deal with various banks and insurance, and thus have access to a larger variety of products, so we view and evaluate the situation differently. I'm not saying your RHB banker is a bad person, just that we each have different products, and approach the situation from different angles.

It's also worth noting that the beneficiary of an MRTA is the bank, while you can appoint your own beneficiary for MLTA, which is more in the interest of the home owner, instead of the bank.

Hope this helps.

If you need further clarification on this, feel free to PM me again. I'm always happy to discuss this.

Cheers,
Matt

Hi. I also signed the same thing from RHB. Just wondering, are we supposed to get any policy number for this GCLTA?

Yes you will get a policy cover note. It will state the coverage, policy number etc

Yes, you should, along with the details of the coverage.

Hi mate

Im about to sign up the same CLTA, could you please check if it's transferable? Some said no some said yes, kindly assist.

MRTA = CLTA?

Hi,

MLTA transferable means the initial property that tagged with it need to be paid off first then only able to transfer yea?

Thanks