You mean your are paying RM1200 installment + RM300 for the MPRP = RM1500 per month? I dun think it's good deal if so.
And same question, does your RM100k+ guaranteed?

your sacrifice RM300 is mean RM1200 loan installment + RM300 for your policy total RM1500 per month?
Or the RM300 already include in the RM1200?

Your not guarantee return after 20years is RM106K, I get another quotation which give me RM214K (not guarateed also) at 20years also. With same amount RM300 per month. With this you may settle your loan in 20years also and also extra cash for you at that time, you get a house and cash. Will that be alot better?

This post has been edited by onnying88: Apr 4 2009, 01:41 PM

MRTA or MLTA premium is calculate base on your Age, Loan Amount and Tenure.
You may pm me if you need some quotation for MRTA or MLTA.

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Added on July 15, 2009, 12:11 amMost likely will be investment link product. If it's a investment link product, bear in mind the return that they show you are not guaranteed. You need to double check for it. How many yoear will take to have the enough money to settle the loan? izzit can be done in the 5years time that you planned? Even for some guaranteed return insurance saving. The return will be guaranteed, but the loan interest will not be guaranteed. The BLR can rise anytime, so If in the case BLR rise, the earlier plan that show you may settle the loan in X years might end up at Y years.

Of cause the agent also right about some fact. If you pay more up front, you might be taxed for it.

For your case,you might consider using Flexi Loan also. The way is you take 80% loan, Then the remaining money that you plan to use to pay upfront earlier, you just dump in to the flexi account. Just after 5 year if you have the money to settle it, you can settle the loan without without any penalty also. Even that you may choose to just leave the money in the flexi loan and let it deduct the installment until your principle or loan settle. The bank will not charge you any interest at all in this time. Please note that the money you dump into the loan is just for interest offset, NOT settle the loan, so the money you dump in will not be taxed.

This is one of the way you can consider, of cause there's might be others way that may suit your needs too.
Goodluck in everythings


This post has been edited by onnying88: Jul 15 2009, 12:11 AM

How many years the MIA will need to get back the money to settle the loan? is it guaranteed? Is it same with the 5 years planning?

If not, I think the better way is to buy a 5 years MRTA Or 5years Leval Term (both also very cheap only) and then just settle the loan in 5years time as your planning.


This post has been edited by onnying88: Jul 16 2009, 01:37 PM

Maybe the MIA is just another term/name of AIA's product that the agent use to convince and sell together with the loan.
If you wanna know clearly, ask the agent what's the product name in AIA's website. Or you ask him to show you a quotation for the surrender value. Then you can check it from the AIA's website or counter.
In the quotation you should able to see the surrender value at different years. And there will be a words GUARANTEED if the return is guaranteed.
If not, then the value is just a projected value that base on pass years record.

Even in Hong Leong Insurance we do have the same similar product also. If you interest to know the benefit between Hong Leong and AIA, you may contact me also. I can make a quotation and compare both for you too. No harm to know more different product right

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Added on July 16, 2009, 11:52 pmThere are lot type of MLTA out there. Some of them can be use until your age 100. With Guaranteed return + interest also. Maybe you haven't found on that suitable for you. But i do agree MRTA is also a good choice if it's suit your needs.

Ya,I agree with you when we finished the loan, that's the time we really need life insurance. But do you know we can continue to use the MLTA as your life insurance also? As i mention some MLTA can be use until age 100.

Benefit for MLTA?
Can refinance as much as you like. Because you will need to buy MRTA again everytime you refinance. And MRTA premium will higher due to age. MLTA premium will just remain the same.

After settle the loan, where's the time you really need life insurance.
You can continue to use the MLTA as your life insurance also. And it's alot cheaper then you buy life insurance after settle the loan, because you brought the MLTA when you'r still young.

Within this period most people dont get sick?
We will never know, that's why we have insurance in this world

All the best





This post has been edited by onnying88: Jul 16 2009, 11:52 PM

we need more information about the OLTA before we can compare the different for you.
For example the surrender value, term, premium.

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Added on July 17, 2009, 1:22 amThis is an example of quotation i've make for a forumer between MRTA and few type of MLTA. Loan amount for RM230k for 30years @age 26

For MRTA,

MRTA, RM230k, age 26 , 30years = RM5931.7 one time payment.
(MRTA is not transferable, no surrender value at the end of tenure and need to buy again everytime refinance)



For MLTA,

MLTA 1st type (1 to 1 guaranteed at the end of tenure)
Coverage for RM230k , 30 years tenure @ age 26
= RM303.60/mth or RM3643.20 if you pay yearly
RM3643.2 x 30yrs = RM109,296
Total surrender value at 30years = RM109,296 GUARANTEED
(You will only get back 1 to 1 at the end of the tenure. If you settle the loan in 25years,you will get lesser from what you've paid so far. You will still need to serve this MLTA for another 5 years until 30years total to get back 1 to 1. The another extra benefit compare to MLTA type 2. This MLTA will pay double RM230k x2 = RM460k if your death is cause by accident.The rest benefit is the same.)



MLTA second type (1 more then 1 guaranteed after break even years)
RM230k , 30 years age 26
= RM189.38/mth or RM2164.30 if you pay yearly.
At 14th years, you paid RM2164.30 x 14= RM30300.20
And at this time your MLTA surrender value is = RM30438
Which mean your break even years is at 14years.
(If you settle your loan in this time, you have nothing to lose as you already can get back 1 to 1.)

If you continue use this MLTA, you actually start earning some interest
If let say you settle the loan or continue using this MLTA for 20years.
Your total paid is RM2164.30 x 20yrs = RM43286
Your MLTA surrender value at year 20 is = RM50451 GUARANTEED
And if your loan settle at 30years,
Your total paid is RM2164.30 x 30yrs = RM64929
Your MLTA surrender value at year 30 is = RM87993 GUARANTEED (=Free 30years MLTA + RM23063 interest)

And the good point of this MLTA second type is you can use this MLTA until age 100. Meaning you can use this as your life insurance after settle the loan. Why? It's very cheap compare you buying a new RM230k life insurance at 56years old. And the return is GUARANTEED



MLTA third type, Investment link MLTA
The monthly installment can be as low as RM100, but the return will be very little as most of the money already use for insurance coverage. Only left little portion will go to investment fund. The higher you can pay, the more money will go to the investment fund and thus your surrender value will be more at the end. So i can't show you the return as it's not guarantee and it's depend on the investment fund performance.

This post has been edited by onnying88: Jul 17 2009, 01:22 AM

For ALL MLTA, you no need to recalculate again. You just keep on using it until the end of tenure/maturity years that you choose at first.

For example
MLTA type 1,
You brought the MLTA type 1 at 2009 for 30years. At 2014, you decide to sell/refinance the current property. So you just continue to serve this MLTA for another 25years to get back 1 to 1 o what you've paid.


For MLTA type 2,
You brought the MLTA type 2 at 2009 for 30years. At 2014, you decide to sell/refinance the current property. So you just continue to serve this MLTA for another 9years (for example on above post, 14years to break even) to get back 1 to 1 of what you've paid, or continue use this MLTA up to age 100 and enjoy some extra interest.


For the interest, given example 26yrs old @ RM230k
Your total paid is RM2164.30 x 20yrs = RM43286
Your MLTA surrender value at year 20 is = RM50451 GUARANTEED
So the interest will be RM50451 - RM43286 = RM7165 (and you get free RM230k insurance for 20years also)

Please take note that for MLTA type 2, Different age and different coverage amount will have different break even years and interest. But once the quotation is make and you brought it, the surrender value will be black and white GUARANTEED.

This post has been edited by onnying88: Jul 17 2009, 07:53 PM

My quotation also show for RM4.1k for your MRTA. From Hong Leong Assurance.

Welcome

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Added on August 16, 2009, 7:56 pmPlease provide more info about the Group Mortgage Term Assurance so that we can give you come clarify or info. Such as the company, buy from who? (bank provide with your letter offer or from agents outside?), or your loan amount and tenure.

This post has been edited by onnying88: Aug 16 2009, 07:56 PM

It's one time payment.Either you choose finance into the loan or you pay by cash yourself. Please take note that all MRTA is not transferable. Meaning everytime you refinance or sell of the property, You have to buy another new MRTA to replace it and will be quote higher price as your age go up. Any question or quotation feel free to ask me. I'll be glad to help everyone here.

This post has been edited by onnying88: Aug 16 2009, 09:12 PM

Normal MLTA also can 1 time pay off which is by full payment, but the price will be . Of cause there will be some discount if you do full payment for MLTA.

I would like to know the OCBC MLTA also. If the premium is around the same with MRTA, then it's good news to everyone.

Can pm me your D.O.B? I can make a quotation from Hong Leong Assurance for you to compare.

Here is a example of quotation for a 30years old client with RM800k level coverage. Which mean through out 20years also cover for RM800k.
Monthly payment = RM 745.50
Total payment for 20years = RM178,920
Surrender value at 20years = RM202,704 (Guaranteed)
Break even years at 16 years. Because surrender value at 16 years = RM151,448 (Guaranteed)
while your total payment for 16years= RM745.5 x 12mth x 16yrs = RM143136.

This policy can be use for up to age 100 and can continue serve as a policy even you refinance in the future while MRTA will be burn and have to buy again.
This policy have have break even years of around 15years. So that you get back what you pay for this insurance in shorter time in case you settle the loan in shorter time.

For more information, feel free to Pm or contact me.

Onn
017-6100337

Can tell me why MLTA is not good to take? email me at onn88@hotmail.com. Thanks
Actually MLTA is a life insurance itself. People choose to get MLTA because it's give better benefit then MRTA and it's use to replace MRTA. And don't mix together with MLTA and life insurance, because MLTA is cover for property and life insurance is cover for your family. It serve for different purpose.

I think you miss out what's the purpose of a MLTA or MRTA
Yes, we can always use the MLTA money to pay off the loan to shorten the tenure, but what if somethings happened to you in the middle time? Who will paying the loan for you? Using our life insurance money?

Of cause MLTA return will not better then the interest you saved when you put the MLTA money back to the loan, simply because MLTA is not for investment purpose, no point to compare the return with the loan. You buy MLTA to get protection and guaranteed a home for your family in case of anythings happened to you in the future. This is the main purpose of a MLTA. You borrow money from the bank, no matter what happen, you or your family will have to pay back money to them or the bank will take away your property. With MLTA, your family no need to worry about the loan installment anymore.

For life insurance, you buy it because you want to give an addition living fund to your family if somethings happened to you. Not use to pay off the loan.

MLTA and life insurance, both serve for different purpose. Although both are similar product.

This post has been edited by onnying88: Sep 13 2009, 07:26 PM

The point i wanted to say, MLTA is for protection of my property, Life insurance is for protection for my family.It serve for different purpose. If you combine both, where is your family fund after your family take the money to pay off the loan?

Of cause if you look at the point where you can take the money to shorten the loan tenure, why not go for option 4, RM1000 the loan? The money you put for any insurance, also gain lesser then the loan right? Option 4 is 100% the fastest way to settle the loan.

Actually MLTA itself is a life insurance already. Because any life insurance also can be use as MLTA as long it cover the loan amount. If you only have one policy in hand (only one fund for family), be it MLTA or any life insurance, it consider you are in option 2 already.

Cool down , i thought life insurance will be use as a family fund as normal every one understand. That's why we use the term of MLTA instead of life insurance in mortgage to avoid missunderstand and mix up both. As i mention on above, MLTA is actually a life insurance, any life insurance also can be use as MLTA. So for me, option 1 or option 2 is both same, it's depend of what type of MLTA or life insurance you getting.

For your option
1) RM750 for loan, RM250 for MLTA.
2) RM850 for loan, RM150 for MRTA / Life Insurance
3) RM750 for loan, RM150 for MRTA / Life Insurance, RM100 for Investment.

How about if i can get MLTA for RM150? Will it be better then option 2? With the surrender value from the MLTA

Giving an example,
30years old male, buying a RM150k MLTA for RM155/mth with surrender value of RM63579 guaranteed at 30years.

Can you recommend a life insurance (not MRTA) for RM150k sum assure for same client? What's the extra benefit,price and surrender value? How much you can save if you put the extra money (if have) to the loan.

Thanks for sharing, would like to learn more from others

Ok, from your above calculation. Using the RM155 MLTA, i will get return of RM49776 at 25year from the MLTA.
At 25years, my loan outstanding will be RM41828. (using fixed rate 4.85%)
So i can take the money from MLTA and pay the loan balance. RM49776- RM41828 = RM7948 extra i can get.

So in order to match with your 24.5 years. I paid extra 6month x (RM792+RM83) = RM5250

Which mean i total earn RM7948- RM5250 = RM2698 with condition i still get the same protection with RM150k and paying the same installment amount. Although i need to pay another 6month, but i pay 6 month extra to gain RM2698.

And above calculation is base on 4.85% fixed rate. Which is a lot higher then normal mortgage loan rate BLR-X%. But i still can earn a bit.

As i keep on mention, MLTA is actually a life insurance, as MLTA = Mortgage Level Term Assurance. So any life insurance that can offer level protection, we can use it to replace the MLTA. It just depend which product you think is most suitable to replace.

The MLTA surrender value at 25years and 30years is correct and it's Black & White Guaranteed. Different years have different value. It's not base on any % of interest for the surrender value.

I do agree that BLR will fluctuate and 100% not going to stay as low as current rates. But since it's historical low interest for now, why not we enjoy the benefit of the cheap interest now? We can always refinance in the future.

Of cause it wouldn't be lower then current rate, that's why, why we dont enjoy the low rate we can get for now? But even you using fixed rate now, a lot of people already refinance the loan within few year time for many reason. Refinance later to fixed rate loan if you worry about the high rate.Of cause fixed rate also rise that time. Why pay for higher interest with fixed rate from starting while you can get for much lower rate?

Well different people have different point of view. Some people are not risk taker and will prefer for somethings that they know for the future, in this case Fixed rate loan. There is pros and cons about both type of loan. So it's totally up to the personal

You should not use confuse this word, MLTA purpose is to cover your mortgage loan. Not to be as family fund as normal life insurance function. That's why it's better to have another name for it. When you buy any life insurance to cover your mortgage loan debt, you can call it MLTA already. I didn't see any problem not to use another name for it as you use it as different purpose.

This post has been edited by onnying88: Jan 9 2010, 01:11 PM