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...

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









This post has been edited by GHOSTVIC: May 20 2014, 10:19 PM

Bro i have confusion here, for an example you quoted for below..

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
---------------------------------------------------------------------------------------


if i calculate monthly premium RM515.32 for below number of months, the total paid amount varies than your amount.
I believe you multiply with yearly premium.. so yearly premium cheaper than monthly ?

515.32 x 12 months = RM6183.84, but yearly premium u have quoted is RM5889.60... So which is correct ?

515.32 X 168 months (14years) = RM86573.76
515.32 X 240 months (20years) = RM123676.80


This post has been edited by GHOSTVIC: May 21 2014, 03:38 AM

hi onnying88 bro, which insurance company you attached with ? i see the price for same loan amount, from each insurance companies are vary... some quoting higher and some lower...

hi onnying88 bro, which insurance company you attached with ? i see the price for same loan amount, from each insurance companies are vary... some quoting higher and some lower...


previously ur Quotation for MRTA

Age: 33 (1981)
Male / Non-smoker
Loan: RM275k
MRTA coverage of RM275k for 15 years, Cover Death & TPD (Total Permanent Disability)

MRTA premium will be RM3811.00 (one time payment only).

Coverage table for 15 years




i noticed AMBANK quoted me below that price for 280k loan











This post has been edited by GHOSTVIC: May 22 2014, 08:51 PM

hi bro onnying88,

I believe MRTA can be purchased directly from bank or from outside insurance agency. Bank do have their own insurance agency appointed i believe. So taking MRTA direct from bank, bank will be beneficiary. How about buying from outside agency ? What will be the process ?

-Getting MLTA, still bank will be the 1st beneficiary followed by family members ?
-I have approached a bank where they have MRTA and MLTA. Their MLTA no surrender value at all but the term assurance is same through out the tenure and once reach the expiry thts it.
-Is that true bank doesn't have MLTA type 2 or type 3 and that only can be purchased from outside agent ?
- i have been told that, taking MRTA / MLTA direct from bank, where bank be beneficiary... if anything TPD / DEATH bank 100% will do the necessary things, return the cash to family or anything.
- taking from outside insurance company, there is no guarantee the money will be return to family members in the event family not aware of house owner's MLTA.


I was in assumption that if take MLTA lets say TYPE 2, can pay yearly premium each year get added in total loan. Like how we pay for fire insurance, where each year the insurance amount will add up in loan principal. But the bank i approached updated take MLTA which no surrender value i need to pay one lumpsum amount lets say for 30 years... like MRTA.


can you explain me further.

Hi bro, thanks for the explanation... MRTA is straight forward, MLTA bit tricky thts why still trying to clearing out doubts as much as possible. The MRTA or MLTA coverage, is it stated in cover notes as MLTA or MRTA anything ? MLTA and MRTA specifically designed for property coverage and have own terms ?

I have heard having personal insurance, already can use it as MLTA. How could that be possible ?

is it like lets say if personal insurance coverage for TPD/DEATH/CRITICAL is 100k... when u buy property worth 500k..we increased the personal insurance coverage to 500k... is it how it works ? then why MLTA needed ?

basically MLTA just covers TPD and DEATH right... so MLTA just like personal insurance right, but does it have any special differences comparing with traditional personal insurance ?

This post has been edited by GHOSTVIC: Aug 6 2014, 11:33 AM

name it as MLTA ? means in the document or booklet stated MLTA ? usually when get personal insurance the book with details of coverage, explanation on critical illness and extra, illustration included right..
we can get MRTA and MLTA.. even after 1 year of property purchasing period, just that coverage amount increase when age catch up.. am i right ?

Guys , i would like to advise those looking for loans. Past few months i have submitted documents to few banks and had few experiences through out all this loan process and procedures. Almost 4 banks loan has been approved but i have rejected since their package not worth.

I were fully interested on FULL FLEXI before this, since i had intention to park money at current account to save loan interest. So each bank i have tried i was looking for FULL FLEXI and below was my feedback.

AMBANK - Beginning stage agreed for 80% and BLR-2.2, where BLR was 6.6. Then 1st reply said only can offer 70% with blr-2.1. Requested to push for blr-2.2. Next feedback was only 65% and blr-2.15 . So what i noticed here each time i ask to give better rate bank tried to reduce MARGIN OF FINANCE and made me to increase property value higher. So i have rejected.

MAYBANK - NO full flexi for business premise. Bank offered standard traditional loan, said can push for blr-2.2, subject to HQ approval. And if iM willing to park any cash in FD that would be easier for them to push. So i dropped.

CITIBANK - Full Flexi can push for blr-2.0 but loan tenure is just 20 years where monthly installment getting higher for loan amount. Not afford to pay, dropped.

ALLIANCE BANK - Fullflexi blr-2.0 can push more, only can offer 70% loan. In order to get better rate i must park about 50 or 60k in current account for 6 months. Later can take out money it seems. What i don't understand is, even without knowing whether loan success or not we have to park money in current account. If fail, still our money stuck in CA. So dropped.

HONGLEONG - Do have fullflexi link to current account. Blr-2.1 subject to approval. Loan approved but i reject since only can offer up to 20 years with lower amount of loan since their risk calculation on me is high. So dropped

PUBLIC BANK - Before try above banks, had tried PUBLICBANK once and they informed FULLFLEXI package has been closed. Then recently tried again and found out they offering FULLFLEXI if loan amount is above 500k with BLR-2.2. Seems good offer and applied then later on found out how their FULL FLEXI really works, where previous i had understanding of what ever cash you park in current account will be used to offset the principal loan amount and balance will be calculated for payment. BUT ACTUALLY NOT. I have attached below snapshot of clause.

To explain you short, PUBLIC BANK CURRENT ACCOUNT should have minimal amount which is 30k. That 30k will be excluded from computation. And only 50% of balance money in CURRENT ACC (after minus minimal amount 30k) will be used to offset loan principal amount.

Example, you have 100k parked in CA. Minus 30k of minimal amount, balance 70k. So only 50% of 70k means just 35k will be used to offset outstanding loan principal amount. So the rest of 65k in CA doing nothing....


LOOK AT 5.1 , 5.2, 5.3



NOW I already have doubt about FULL FLEXI at other bank, might be works in same way.
So i advise please check the clause or term how their FULL FLEXI works.




==============
HI Guys,

Here is TERMS & CONDITION ftrom ALLIANCE BANK for fullflexi account. They call it SAVELINK TERM LOAN ACCOUNT linked to SAVELINK CURRENT ACCOUNT

however when i checked at their online website for the package it says TERM LOAN + OVERDRAFT... does it serves same purpose like fullflexi ?

According to snapshot sent by mortage officer looks like no hidden charge, capping or minimal balance. But i still do not understand why that person never take snapshot of single photo from clause 4 to 5, instead of sending part by part. Something smell fishy...

Do you guys understand what that terms talking about, do you feel the same way i felt ?




This post has been edited by GHOSTVIC: Nov 25 2014, 07:26 PM

Hi Bro,

I just got this illustration for MRTA from PUBLIC BANK, MRTA from AIA known as GMRTA

For 30 years tenure MRTA is RM15,305.10 for RM510k loan amount.
Then financed into loan RM525,306.

According to banker, if still under financing the initial beneficiary will be bank.
If settle loan early and never cancel the MRTA policy then the nominee appointed will be the beneficiary.

Called AIA to find out if there is any refund for MRTA. Confirmed there is refund if settle loan early.

Currently public bank BR rate is 3.65% + 0.95 / 1.0 / 1.1 (depends on type property and amount of loan)





so what would be your MRTA / MLTA quotation for the same loan amount bro onnying88 ?

i see there is Mortgage Reducing/Level Term Assurance with Critical Illness (MRTA–CI/MLTA-CI)

standard MRTA/MLTA only covers DEATH and TPD only right.

This post has been edited by GHOSTVIC: Jan 22 2015, 11:07 PM