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> MRTA - Purchase outside?, MRTA

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TSofficepw
post Apr 25 2022, 11:07 AM, updated 2y ago

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Hi all.

Just wondering. Can I purchase MRTA separately from third party or it has to be under bank's insurance company?
Bank offered MRTA into the loan so they can offer slightly lower interest rates.

The MRTA quoted by banks differ from 1 bank to another - how can this occur?
Loan officer said the MRTA cost is already generated by system and no discount can be given - is it true?
Some bank's MRTA cost is almost double the MRTA offered by another bank with the cheapest MRTA for same amount of loan.

How to avoid that? And any suggestions or views to get the best out of this situation? I still want MRTA.

DragonReine
post Apr 25 2022, 11:17 AM

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Just wondering. Can I purchase MRTA separately from third party or it has to be under bank's insurance company?
Banks usually have multiple panels that you can request quotation from (there are cases where one panel will reject coverage or give incomplete coverage, but another panel company will give adequate coverage). Bank usually will reject if not under their panel however as they want MRTA to properly cover bank's interest in the event need to claim.

The MRTA quoted by banks differ from 1 bank to another - how can this occur?
It depends on the panel/prioritised insurance company attached to the bank. Each insurance company gives different pricing.

Loan officer said the MRTA cost is already generated by system and no discount can be given - is it true?
Largely yes, although with some tough negotiation you can ask for price matching. These aren't common, however, it's easier to just buy from the insurance company of your choice provided bank accepts them as their panel. If your third party doesn't provide the proper coverage and/or isn't on their panel bank won't accept.

Some bank's MRTA cost is almost double the MRTA offered by another bank with the cheapest MRTA for same amount of loan.
Check terms and conditions, some may have added coverage like critical illness. It also depends on your risk factor (health, occupation, age, medical history) as different companies weight them differently and adjust premiums accordingly.

This post has been edited by DragonReine: Apr 25 2022, 11:23 AM
anakkk
post Apr 25 2022, 11:18 AM

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let bank handle it, don't listen to insurance agent will do

 

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