MLTA is transferable by re-assigning the policy back to the insured or another financial institution, however continuity is up to the term length only.

Example: You took a MLTA for 20 years, after 5 years you refinance your loan and took another new loan with same amount for another 20 years. You can assigned the MLTA over, however with only 15 years left in the term, you might need to buy a new policy at an older age at a higher premium, subjected to health checks & etc.

Subjected to different insurer rules & regulations, another alternative solution would be to convert it into a whole life policy, which will also be subjected to a higher age based premium as well as health checks and etc.

Both MRTA and MLTA does not have cash value built up, only Mortgage Whole Life Assurance (MWLA) have cash value & savings over the years.
Basically MWLA is a form of Whole Life Insurance with specify focus on debt protection with features like lower cost, guaranteed cash value, etc.

However, you can have a combination of either 2 type, or even all 3 should you wish to, hence why some agents may tell you MRTA or MLTA can have cash value.

Basically if you can afford it go for MWLA, best value for money. But if you have enough Life Insurance, go for either MLTA (if you wanna leave behind extra for family) or MRTA (at least a roof over thier heads during your absence) or a combination.

Hope my explanation helps.

Should you have any further questions or want a quotation, you can always pm me.

Thanks. Best Regards.

This post has been edited by Zarth: Jan 31 2008, 02:51 AM

Dear forumers,

Would anyone be interested in an MRTA/MLTA that is transferable?

Its basically a product with the same low cost as a MRTA/MLTA but instead of assigning it to the bank, you can opt to assign it your beneficiaries first.

Traditionally, the MRTA policy would follow the bank, however this new product serves as an individual policy following the insured instead.

If you're getting a new loan and banks insist that you must have an MRTA/MLTA, you just need to assign the policy to the bank.

However according to Bank Negara ruling, that is optional.

If you have previously opted not to get MRTA from the Banks, you can opt to get it now.

Also, as it acts like an individual debt protection that can be extended to not just cover home loans but also overdrafts, car loans, or even personal loans.

I'll share more info should anyone is keen to know more.

Thanks.

Best Regards.

This post has been edited by Zarth: Mar 27 2008, 09:12 AM

Ok, here's some of the features and differences from MRTA/MLTA:

1. Transferable and Portable - policy stays with the owner no matter how many times you refinance.

2. Joint-life applicants, each have thier own policy. This allows any of the joint applicants the option to continue the policy should one passes away. Also they get to enjoy 20% Instant Savings off the normal premium. Joint-life applicants can be anyone, friend, brother, sister to business partners, Etc.

3. Flexible coverage term from 5 up to 40 years + 3 years construction period. Good for those who plan to settle their loan early. Option to continue on even if the loan has been fully settled.

4. Single premium - one time payment. Coming soon, 6-12 months Interest-free Instalment Payment Plan for PB, Citi or Maybank Credit Card holders.

5. Covers Death and TP Disability - sickness, natural or accidental. 24 hours Worldwide Coverage.

6. In the event of Death, sum assured is paid to beneficiaries. If the bank insist they should get it first, then just assign it over to them and revoke it once you have settled the loan. If there is a balance after settling the loan, it is paid to the beneficiaries.

7. Affordable and able to cover other types of loans such as overdraft, car loan, personal loan.

If anyone wants a quick quotation, just provide me with your D.O.B. , Loan Amount, Interest & Term.

Thanks.

Best Regards.

Normal MRTA/MLTA is underwritten on a Group basis hence the lower in premium compared to conventional Term Life Insurance which is underwritten on a individual basis.

This new solution is underwritten on a Group basis while still giving you the benefits of a normal Term Life.

Hence when you compare the cost, it is much more affordable.