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.

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

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