MLTA is another term of life insurance. That's why you can note the plan feature, premium, coverage & return (cash value) may vary for every insurer.

Before you opt for MRTA/MLTA, you need to consider about your future plan:-
1) Will you refinance your house in couple of yrs?
If yes
MLTA - is not affected / transferable (it cover the insured, not the loan)
MRTA - will burnt / not transferable (only cover the existing loan)

2) Will you purchase a new house in future?
If yes
MLTA - just need to top-up to cover your new loan & existing loan. Eg : MLTA 200K, Existing loan 200K & outstanding balance 100k, new loan 300K, you just need to top-up the sum assured of another 200K.
MRTA - need to buy for the whole loan amount again. Eg: Need to buy MRTA 300K for new loan although you have existing MRTA of 200K.

3) Are you finance MRTA into your loan?
If yes, then you need to pay the interest. Eg : Loan tenure 30 yrs, Rate = BLR -1.9%, MRTA = 10K. Imagine extra interest u need to pay extra on 10K = 10K x 4.15% = RM410.50 yearly
If no, you can pay MLTA by monthly, quaterly, semi-annually or annually. The premium you paid will not much different if compare to MRTA with the effect of compounding interest if you finance it into loan. Meanwhile, you can cash out the policy around year 20 (year 20 you will get back almost 100% of the premium paid) to settle your loan. Thus, you can save the interest on the loan & shorten the repayment tenure without taking out your EPF money.

Btw, I'm a mortgage broker and we work closely with various bankers to help our client to secure the loan without any charges. You can email your name, age & loan amount and we can propose to you the best suited package for loan & MRTA/MLTA.

Pls feel free to email me at khhong88@gmail.com if you need to know more.

We always advise our customer to insured on both borrower instead of one. However, it's a bit risky if you spilt the amount to 50% + 50%. Assume 1 of the borrower is passed away, the loan will only reduce to half. Your partner/family still need to pay the balance.

You can buy the MLTA at 70% of the loan amount as your loan outstanding will be reduced yearly & your MLTA will accumulate some cash value. Meanwhile, if anything happens, your partner/family can use the 70% cash to reduce the loan & then ask for loan restructuring. This will reduce your loan instalment to very low so that your partner/family is able to serve the loan without too much commitment.

Btw, I'm a mortgage broker with various banks as panel. Please email me your contact no. to khhong88@gmail.com so that I can explain further. Thanks.

The nature of MRTT is same as MRTA. Only different terms they use.

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Added on October 16, 2010, 3:42 amYes. The MLTA is not compulsory. You need to access your risk then only decide on the amount to buy.

Pls email me your contact no. at khhong88@gmail.com for more details.

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Added on October 16, 2010, 4:02 amHi fren, MRTA & PA is different thing. MRTA is protecting your loan amount while PA is insured on your life in accident. If you passed away or permanent disable due to disease like stroke or heart attack, your PA will not cover while MRTA will pay off your loan.

The MRTA amount vary due to the sum insured based on the factor insurer used to project the future borrowing rate & your entry age.

Pls email me your contact no. at khhong88@gmail.com so that we can discuss further. Thanks. Hong.



This post has been edited by khhong88: Oct 16 2010, 04:02 AM