ok guys, need help!

now im in the process of getting the home loan from AIA (Fixed rate), and within the LA (Loan Agreement) stated one of this specified condition which disturbs me:-

"The new AIA life policy(ies) or new AIA GMRTA purchased must be in force throughout the entire loan duration, failing which AIA reserves the right to revise the applicable interest rate accordingly for the loan at the discretion of AIA with immediate effect from the date of lapse or cancellation of such policy or policies without any prior notice or reference (whether in writing or otherwise) to the borrower(s). For the avoidance of doubt, any subsequent reinstatement of an AIA life policy(ies) or AIA GMRTA which has lapsed or been cancelled will not entitle the borrower(s) to any reinstatement of the applicable interest rate under the AIA Mortgage Save package."

.... is this condition appropriate and normal/standard case?
im not sure as im 1st time house buyer, need some advise from you all.
and by the way, is GMRTA = MLTA for AIA? cause i told the agent that i wanna get MLTA for my home insurance.

TQ very much! >.<

This post has been edited by runaway1234: May 17 2011, 04:31 AM