guys, need your help.

im applying for home loan. bank says it's compulsary to take mrtt and cant choose mltt instead because of the house price is below 400k. is it true? any other way for me to get mltt instead of mrtt?

One thing I am unhappy about MLTA is the premium so damn high... Imagine monthly premium of 500... Crazy... Took 430k loan for 35 years... Heard ppl say MLTA very good then go buy , coupled with all those life, medical card, and critical illness all I got is 500 per month.. Damn... I canceled it ... Btw I'm only 26

One thing I am unhappy about MLTA is the premium so damn high... Imagine monthly premium of 500... Crazy... Took 430k loan for 35 years... Heard ppl say MLTA very good then go buy , coupled with all those life, medical card, and critical illness all I got is 500 per month.. Damn... I canceled it ... Btw I'm only 26

guys, can please quote me 500k coverage (mlta or ilp)
male, age 31.
option 1 - only life
option 2 - life and ci

Guys,

If I decide to take MRTA afterward (not include in mortgage loan package), is it more expensive or what?

Guys,

If I decide to take MRTA afterward (not include in mortgage loan package), is it more expensive or what?

It will be more expensive only due to your age. As all insurance premium going higher as age higher.

If your afterward mean few month later and still before your birthday, then it will be no different. If after birthday then will be more expensive.

Due to commitment issue on my DSR calculation, loan officer did not include in MRTA. That is why i am asking. Plan to buy separately.

Hi, As for you quotation for MRTA and MLTA,

Quotation for MRTA

Age: 33 (1981)
Male / Non-smoker
MRTA cover for Death & TPD (Total Permanent Disability)

MRTA coverage of Rm420k for 30 years, premium will be RM18,765.00

MRTA coverage of Rm480k for 30 years, premium will be RM21,446.40
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Quotation for MLTA
For MLTA type 1 with NO Surrender Value (but will have some value only if you surrender this policy earlier)

Age: 33 (1981)
Male / Non-smoker
MLTA  type 1 , Cover Death & TPD (Total Permanent Disability)

MLTA type 1 coverage of Rm420k for 30 years,
Monthly premium = RM209.10
Yearly premium = RM2389.80

MLTA type 1 coverage of Rm480k for 30 years,
Monthly premium = RM238.98
Yearly premium = RM2731.20
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For MLTA type 2 with Guaranteed Surrender Value
Age: 33 (1981)
Male / Non-smoker
MLTA Tenure: There is NO term for this MLTA type 2 so it can be use up to age 100, just surrender this policy at any year you want to terminate or when the loan fully paid.
MLTA coverage type 2 coverage of RM420k, Cover Death & TPD only

Monthly premium = RM450.92
Yearly premium = RM5153.40

GUARANTEED
Surrender value at 40years = RM277,242.00 (total paid only RM206,136.00)
Surrender value at 35years = RM240,656.00 (total paid only RM180,369.00)
Surrender value at 30years = RM200,659.00 (total paid only RM154,602.00)
Surrender value at 25years = RM158,806.00 (total paid only RM128,835.00)
Surrender value at 20years = RM118,730.00 (total paid only RM103,068.00)
Surrender value at 14years = RM72,688.00 (total paid only RM72,147.60) <----- RM5153.40 x 14years = RM72,147.60

MLTA coverage type 2 coverage of RM480k, Cover Death & TPD only

Monthly premium = RM515.32
Yearly premium = RM5889.60

GUARANTEED
Surrender value at 40years = RM316,848.00 (total paid only RM235,584.00)
Surrender value at 35years = RM275,035.00 (total paid only RM206,136.00)
Surrender value at 30years = RM229,325.00 (total paid only RM176,688.00)
Surrender value at 25years = RM181,493.00 (total paid only RM147,240.00)
Surrender value at 20years = RM135,691.00 (total paid only RM117,792.00)
Surrender value at 14years = RM83,050.00 (total paid only RM82,454.40) <----- RM5889.60 x 14years = RM82,454.40
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For MLTA type 3 with non guaranteed surrender value
(This is an investment link plan which the surrender value will base on investment fund performance thus the surrender value is not guaranteed)
Age: 33 (1981)
Male / Non-smoker
MLTA Tenure: There is NO term for this MLTA type 3 also, so it can be use up to age 100, just surrender this policy at any year you want to terminate or when the loan fully paid.
MLTA  type 3, Cover Death & TPD and OAD (old age disability)


MLTA coverage type 2 coverage of RM420k, Cover Death & TPD only
Monthly premium = RM200.00
Yearly premium = RM2400.00

Projected Surrender value
At 14 years, High = Rm31,051.00, Low = Rm22,708.00
At 20 years, High = Rm52,067.00, Low = Rm31,036.00
At 25 years, High = Rm64,009.00, Low = Rm33,655.00
At 30 years, High = Rm73,261.00, Low = Rm30,687.00

MLTA coverage type 2 coverage of RM480k, Cover Death & TPD only
Monthly premium = RM220.00
Yearly premium = RM2640.00

Projected Surrender value
At 14 years, High = Rm33,816.00, Low = Rm24,710.00
At 20 years, High = Rm56,373.00, Low = Rm33,478.00
At 25 years, High = Rm68,724.00, Low = Rm35,746.00
At 30 years, High = Rm77,601.00, Low = Rm31,500.00
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The best MLTA plan for you would be the MLTA type 3 as the premium is the lowest among all MLTA option with the bonus of non guaranteed surrender value.

If the commitment is ok for you, then MLTA type 2 will be a good choice as you guaranteed can get back all your premium paid as early at 14th years. So you will not lose your money to get the protection of Rm480k right after 14 years.
Do let me know if you have any question regarding the quotation above.

Regards,
Onn

hi bro thanks for ur reply... so 30 years MRTA lump sum 

Rm420k for 30 years, premium will be RM18,765.00
Rm480k for 30 years, premium will be RM21,446.40

i still hav option to take like 10 years / 15 years ? then when reaching the expiry can renew ?
what is the disadvantages and advantages of taking half duration and renew later ?
is it in future after 15 years, i go another 15 years the price will be different since cost goes high... ?
is it like if i take 15 years... RM18,765.00 becomes RM9382.50...
then after 15 years, renew base on the outstanding balance...
so in this case, i believe can save more.. incase if i able to reduce more principal on first 15 years. The next 15 years would be cheaper right.

example now im 33 if i take straight 30 years for 480k cost RM21,446.40
if i take just 1st 15 years for 480k, mayb it cost half of above price
then after 15 years, in age 48 lets say my principal balance is RM319524, and i take MRTA for next 15 years..
how the price looks like ?



-straight 30 years  480k cost RM21,446.40
-1st 15 years (age 33) RM480000 cost ?
-2nd 15 years (age 48) RM319524 cost ?
-add up both sum doest it lower / higher than straight 30 years purchasing ?
need ur advice since i feel RM18,765.00 / RM21,446.40... straight 30 years eating up cash
ok the MLTA quotation of yours, is it mixed up with any riders ? can i have just surrender value purpose.
i already have personal insurances with medical card and critical illness...

MRTA coverage of Rm420k for 15 years @ age 33, premium will be RM6561.60


MRTA coverage of Rm319,524 for 15 years @ age 48, premium will be RM17982.81



IF add up both, it will be Rm24,544.41, come out more expensive and do note that the decreasing coverage amount will not match with your 30 years loan.

For example, If somethings happened to you at 15th years, the MRTA cover Rm480k for 15 years will only cover for Rm51,924.24 while your actual loan balance will be at around Rm300k++. So even MRTA will under coverage tenure, the coverage amount will have a big different compare with MRTA cover for 30 years straight. So you will need to top up the different of Rm250k+ to settle the loan.

And also do note that you might not guarantee to get approval and might have extra loading for the new MRTA at later age as it will depend on your health condition at that time.

Regarding the MLTA quotation, it's base on basic coverage of Death and TPD without any rider. Just the same coverage as MRTA.

Hi bro now i clearly understood how it works, so there is risk of taking for half tenure unless i sell off my property within 5 years.. However i take full tenure Rm480k for 30 years, premium will be RM21,446.40.. i sell the property within 5 years i still can surrender and get back rest of the policy money right..
i read through this articles
http://insuranceinmalaysia.wordpress.com/c...y/mlta-vs-mrta/
http://www.property.cc/khim-associates
Why you may lose your house if you simply opt for Bank MRTA?

MRTA is the abbreviation of Mortgage Reducing Term Assurance.  For those who don’t know what’s MRTA – it is a life insurance plan with decreasing sum assured over time, just to cover your home loan owed to bank.

Normally, this is what happen. After you buy a house, the mortgage officer will normally ask you to buy a hassle-free bank MRTA, single premium, and financed into the loan. You only pay a little bit extra per month, what a fantastic plan!
But are you aware that buying MRTA may not be able to directly protect your asset and your family?

If you purchase MRTA, the beneficiary is the bank. If any misfortune happens, the bank get the mortgage outstanding balance from insurance company (and now the bank is safe).
What happen to your house by now? Your house will be frozen under the estate, your assets will be utilized to pay for other liabilities, clearing income taxes (including outstanding and uncleared taxes for the past many years) and settle legal and accounting expenses. Your family is the LAST party to receive your assets. And in this process, your beloved family will only receive the asset if your asset value is greater than liability, otherwise your estate will be declared insolvent (bankrupt). Your family is forced to leave the house even though the insurance proceed from MRTA has already been paid out. Isn’t it unfair?

In short, bank MRTA is meant to protect the bank, you and your family are only being protected Conditionally.
Then what is the solution? Buying personal MLTA. It means Mortgage Level Term Assurance.
If you purchase personal MLTA, the beneficiary is your family. In case of any misfortune happens, your family will get insurance proceed equal to the value of the house. And the most important thing is that this insurance proceed is creditor-proof and will not be frozen.

What about the house? The house will still be frozen and subject to the same estate execution process anyway.
If your asset is less than your liability, your family at least have already got the cash from insurance. They can buy a new house now.
If your asset is more than your liability, your family get both house and the cash.

Does this make sense to you?And the other wonderful thing is that if you finish your mortgage installment earlier and wanted to change to a bigger house. Your personal MLTA is portable to your new loan.

What is your choice?
Read More http://kclau.com/insurance/mlta-vs-mrta/ - See more at: http://kclau.com/insurance/mlta-vs-mrta/#s...h.tujbXE1O.dpuf

have to disagree totally with the above article.

u buy MRTA solely as a protection against something happening to you which would jepordise your ability to service your Housing Loan.

this means that a normal person would have or is expected to have other life insurance policies to hedge against something bad that can affect his / her ability to provide for the family.

second, having the assets locked up due to having no will is another totally separate matter.  of course pay out from insurance is not affected by having no will as u have nomiated the beneficaciries in your insurance policy.

at end of day, difference between MLTA & MRTA is the former gives higher protection as the coverage is fixed.

MLTA is a good product for those who need and can afford it.