Im confused with MLTA and normal life insurance.
Im currently on ING Prime Life Insurance. Is this a life insurance or a MLTA?
anyone care to explain

its life insurance...just technically your loan is being insured...so if you get called by God, loan gets paid off by the sum assured

Just a dumb question, if MRTA is already purchased for the property, is it advisable to purchase MLTA for the property? So that in case i need to buy another property in the future, I can transfer the MLTA to the new property. or would you suggest to buy life insurance instead?

correct me if i m wrong....

isnt MLTA similar to life insurance ......its juz the way they name it....

owh thx. But what type of insurances covers you if your house burns down?

MLTA/MRTA = Life insurance. Because it will pay the sum assured on death and TPD.
However, since we assign it to bank/financial company and use for mortgage loan cancellation purpose, we name it MLTA or MRTA.

For house burn down, you can check on houseowner policy or fire policy.

High rise or landed ?

owh thx, mine is a town house..under strata title.

Hi, I was quoted a RM7K yearly premium for MLTA on a house loan of RM450K. I am 40 years old so I guess the age factor is a major one for the high premium. My question is, can I buy MLTA for a smaller amount, says RM 350K? Or even less? Can I top it up to RM450 later? Thanks in advanced for comments.

Will be very much appreciated if u can PM me the MRTA Calulator as I cannot find one from the internet.

Wow, your RM7k yearly MLTA premium for loan RM450k is quite high. If you are interest in cheaper premium with the same coverage, you can try call me. Actually, you can buy the insurance in smaller amount like RM350k, just make sure if really something bad happen, your wife or children are affordable for it. If you can afford for the premium, I will suggest to get full coverage by now, because when your age grow older, the premium will be higher.
Just a suggestion, hope will help you.

Thank you

Regards
Axtan Ong
HP: 017-5500 905 Fax: 03-2070 8375
Mortgage Advisory
Mortgage Broker Sdn Bhd
http://www.mortgagebroker.com.my/

Different type of MLTA will have different rate of MLTA, for example

-MLTA with no surrender value = cheapest

-MLTA with non guaranteed surrender value = middle premium range
(normally investment link product)

-MLTA with guaranteed surrender value = highest premium
(Surrender value can be 1 to 1 refund or more then total premium you already paid, and will be stated in policy, regardless of company fund performance.)

So i believe your RM7k quotation should be under group of MLTA with guaranteed surrender value. But do take note that the longer coverage term also will greatly increase the premium.

About your question, of cause you may get RM350k coverage to lower down the premium, but to top up to RM450k later, it will cost even more as your age getting elder.

Make sure you just take what you think is affordable and comfortable with.


Regards,
Onn

This post has been edited by onnying88: Jul 3 2012, 01:23 PM

Thanks Ong and Onn,
If the 7K yearly premium to be used as an extra payment every month (583.33 per month), my loan will be paid up in ~ 20 years instead of 30.
I think I will go for MRTA for 30 yrs. Cheers guys!

thats fire insurance lah, MLTA or MRTA mana ada cover fire punya. apalah.

My apartment got MLTA with finance, management still buy fire insurance for my finance bank.

---

Added on July 6, 2012, 4:53 pmbro, if u think the unit u will hold for another 30 years, MRTA sounds good.

But ur house after 20 years u still want stay there or u don sell away? By the time, after 10 years i sure u will sell it away coz u got better choice. Then MRTA paid in advance burnt redi.

Better source for 5 years or 10 years MRTA. If after 5 years u think u want extend, just renew lor. Why u must pay off 1 shot now of finance it to ur loan? the bank eat ur principle + MRTA loan interest at the very beginning.


This post has been edited by peri peri: Jul 6 2012, 04:53 PM

Actually even if you go for MLTA, you will have surrender value at certain years and you may use the surrender value to do early settlement for the loan. So for sure you can settle the loan earlier then 30 years too if you for for MLTA.

Example.

Age 40, loan amount 450k @ 4.35%

Loan monthly installment = RM2240

MLTA premium = RM7447 per years



Senario 1, put extra RM620/month to loan = total RM2860 /month installment

Loan will shorten to 19.5 years.


Senario 2, put RM620/month to MLTA and pay loan installment RM2240/month (total RM2860 also)

MLTA Surrender value at 25 years = RM208,179 (Guaranteed)
Loan balance at 25 years = RM120,576

So at year 25 i have the option to use the surrender value to do settlement for the loan and i still can get back extra RM87k.



So the pros and cons from above example,

Senario 1,
- loan shorten to 19.5 years.
- no protection for the loan
- or you may add MRTA of RM450k for 30years for RM41k (if finance RM41k into loan = RM200+ per month extra)
- no option to continue the RM450k protection after loan settle or 30 years
- Coverage of MRTA is reducing.
- your premium will burn when no claim

Senario 2
- loan shorten to 25 years with extra cash of RM87k guaranteed
- Get full RM450k level coverage for the loan
- Optional to continue the protection until age 100
- Surrender Value keep on increase then breakeven and overcome your total paid after only 15 years guaranteed
- optional to transfer MLTA to cover others property.


So it just take what is your priority and choose the package most suitable for you.

Regards,
Onn

Hi I am looking for MLTA insurance. Loan amount RM423k, loan term 35 years. Age next bday 28, non smoker. Loan from maybank..

I got quotation from etiqa, but they only have max 30 years, but my loan 35 years.. Wat happend for the remaining 5 years if i die etc..So anybody got good package, i look forward to see the quotation pls.

P/s: Maybank mentioned they didnt accept investment linked MLTA, only Guaranteed policy, my budget only around 200+ per month.

You may email me the quotation pls.. ahfa_cactus@yahoo.com

Thanks.

Hi, i've just email you a MLTA quotation.

Summary from my quotation, @ age 28, male, non-smoker

MLTA type 1 with NO Surrender Value

MLTA coverage type 1, coverage for RM423k and 35 years, Cover Death & TPD

Monthly premium =RM170.26
Yearly premium = RM1945.80


MLTA type 2 with GUARANTEED surrender value, coverage for RM423k until age 100

Monthly premium =RM375.67
Yearly premium = RM4293.45


GUARANTEED
Surrender value at 40years = RM251,968.00 (total paid only RM171,738.00)
Surrender value at 35years = RM213,416.00 (total paid only RM150,270.75)
Surrender value at 30years = RM173,320.00 (total paid only RM128,803.50)
Surrender value at 25years = RM135,478.00 (total paid only RM107,336.25)
Surrender value at 20years = RM100,678.00 (total paid only RM85,869.00)
Surrender value at 14years = RM61,415.00 (total paid only RM60,108.30)

This MLTA will breakeven at 14 years guaranteed. Meaning you already can get back what you paid at 14 yrs guaranteed. More detail can be found in my quotation.

Regards,
Onn
017-6100337

i chosen the MRTA 8 years from RHB for eligible on the -2.4%. wise?

Dear Sifus,

My housing loan just been approved, it is RM 162 k and the bank also added RM 884.00 for MRTA and MRPA.

But , my mortgage broker is asking me to buy MRTA or MLTA, I'm confused now whether to buy or not..

Hope sifus can give advice on this matter.

Thank you.

i think there alot thread for this, search 1st. For my personal preference I would take MLTA since it goes with your name not ur house.