Hi Cipan

To answer your question, premium varies from bank to bank. Some bank offers discounts for sum assured of above certain amount. If you are interested in MLTA from HLA, I can get a monthly repayment of about RM170.00 each person (assuming that you and another joint owner of the house are more or less 28 years old). Furthermore, if you are able to pay the annual premium instead of monthly the overall cost will be about 95% cheaper from what you are paying on a monthly basis. Please do PM me if you are interested to know more.

Hi kkton19,

There are two options, but these options varies for different insurance company.

1) Surrender the policy and get back whatever you have paid together with dividends if applicable.

2) With HLA MLTA you can keep the policy until you purchase a new house and there are two main reason why you should do this:
* insurance premium rate rises according to age. This means if you buy a new MLTA after you bought a new house lets say, next year, the premium will be more expensive.
* HLA's MLTA doesn't have a fix term, that means, you do not have to worry about until when the policy is going to cover you as long as you pay for the premium.

Having said that, I'm only be able to speak on the basis of MLTA feature from HLA. for transferability of your MLTA and its surrender value you'll need to check with your agent.

Hope the above helps! :-)

You are right, usually the break even point for MLTA is 14 years or more.

Hello Barolis,

Congratulations on your new acquisition. I'm Caleb, agent from HLA. Please find a high level quotation of both MRTA and MLTA as requested:

MRTA (Single Premium): RM 18176.10 (Assuming that this is not financed)

MLTA (Annual Premium): RM 5276.10 (About RM460 monthly)

The MLTA plans we have is transferable and this making it suitable for investment properties.

If you could provide me with your email: I could send you a more detail quotation with surrender value schedule. Please let me know if you would like to secure an appointment for me to tell you more.

Thanks and regards,

Caleb Choo
HLA agent
012-2028058
Email: yennjang@gmail.com

Hi Sunny,

You are basically right. Usually bank would want you to have MRTA premium added to loans so they can charge you interest and at the end, you pay more than the initial premium.

As for MLTA, most bank pass case to an insurance company and that means your payment goes to bank and insurance company.

The main difference between MLTA and MRTA is that MLTA has a leveled basic sim assured and an increasing surrender value while MRTA is the other way around.

Hope this helps!

Hi SSblack,

Your understanding of the calculation involved is correct. However, the main difference between MLTA and MRTA are:

MRTA has a reducing surrender value. That is, until the end of your mortgage tenure, surrender value will be 0 and you will not retain any value on the policy after paying RM18176.10 (RM32040 if this is financed).

With MLTA, though at the end of tenure, the total amount paid is RM158k, the surrender value at the end of mortgage tenure (ie. 30th year) will be RM205.4k.

The main difference now will be:
- MLTA retains the value of your policy plus dividends
- it provides level coverage (same coverage throughout entire tenure)
- in event of TPD/death, beneficiary will be someone whom you assign rather than the bank you have mortgage with.


Hope the above clarifies.

Cheers!

Hi Tiger,

Usually it will be break-even from 14th year onward depend on the policy plan you have. Unfortunately I would have to say if you surrender on the 10th year you will not get a 100% refund. Let me know if you have more question that I can help.

Cheers,

Caleb Choo

---

Added on December 6, 2011, 9:56 pmI would also wish to add that MLTA is one of the plan that can help you to shorten mortgage tenure by doing an early surrender.

Cheers,

Caleb Choo

This post has been edited by calebc: Dec 6 2011, 09:56 PM

[quote=SSblack,Dec 6 2011, 11:00 PM]

---

Added on December 6, 2011, 9:56 pm

I would also wish to add that MLTA is one of the plan that can help you to shorten mortgage tenure by doing an early surrender.

Cheers,

Caleb Choo

[/quote]

Mind to explain how it helps to shorten the mortgage tenure?????
Is it someday we can terminated the MLTA and use the money to payback the extended amount of mortgage loan?????

[/quote]

You are right SSblack, you can surrender a policy after the 15th year (to make it worthwhile to do so) and then use the surrender value to pay mortgage balance. Just like doing a little bit of savings aside which grows and then take it out to settle mortgage. If you deciding between both and are interested to talk further about it you can email or call me.

Cheers,

Caleb Choo
yennjang@gmail.com
012-2028058

HLA Agent