Hey dreamer101,

I'm on the same opinion with you based on your multiple previous posting advise on insurance for freshie or ppl with limited income/savings.

On the income tax reduction on 60k/yr income, that's exactly 5,000.00/mth
i.e. employer epf= rm600
employee epf = rm550

550 x 12 mth = rm6,600
which is more than the max allowed income tax reduction of 6,000.

Hence, a person does not really need the life-insurance portion to reduce their income tax if you are earning 5k/mth

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On MRTA, my opinion is a person need to plan and view your own finance, e.g. in my case, I did not take MRTA/MLTA for my house loan, except the compulsory Fire insurance. Why ?

1) I don't see a reason spending 2-5k on MRTA. If I passed away, I have already advised all relevant to sell off the house even if it is lower by tens of thousands, settle the house and move back to parents house.

2) I don't want to pay 25-30 yrs MRTA coverage, when I know I can settle it in <15 yrs. My actual plan is <10 yrs. What's the point paying longer coverage and getting lesser rebate if I settle it earlier ? It's like I borrow 9 yrs car loan and settle it in 5 yrs, and get some rebate which is lower than the interest saved.

3) I have some personal life & medical insurance. This money can be used to settle (1) above if don't want to sell the house. The point here is I use my own insurance to settle house, instead of specific MRTA. No matter which one, both will also stuck in insurance claim processing which may take several weeks/months/years.
MRTA -> House
Life insurance PA -> House

What's the end result ? In the end, the bank offers me either:
(a) 90% financing + MRTA
(b) 80% financing without MRTA -> I took this one.

Outstanding loan balance now ? <30% now on 5th year on my actual money. <0.1% if based on total money dump in to reduce interest rate. I'm keeping this loan a/c for EPF annual lump sum withdrawal.

So, I would say it depends on how you manage your finance, put which one on higher priority, etc.

My advise is balance it up. From your postings, I assume you are in early 20's. I don't know your income/family background and I try not to be bias that 20's earn avg 3-6k (who knows ? you might be a high flyer earning 25k/mth)

My opinion is 800k (assume 90% loan @ 720k ) is too much for you alone, assuming you borrow a little from parents, and the rest from you. And your life insurance is 250/mth (include medical or just plain PA?) or 3k/yr, I would say it is a bit low, when you are taking a 800k risk. I would rather up the PA to 500/mth that covers 1mil than spending on MRTA.

This does not count monthly spending, renovate house, furnish the house, electrical goods, etc. which might add another 50k-250k depending on your budget. Also other expenses like car, etc.

Sorry, I would like to chip in based on some actual case.

I assume medical include the hospitalisation, surgery, anaesthetic, x-ray, MRI, CAT, ICU, HDW, etc. IINM, there are fine print stating claims can only be done over 3 yrs, i.e. 200k / 3 = 66,666 allowed per year.

e.g. If you are in critical condition and need surgery + bla bla bla which comes up to 100k, you can only claim 66k and fork out 34k yourself. Hence, you got balance 133,333 to use from next year on wards.

Read the fine prints, I'm not sure most of the insurance has change this policy or not. For those agents here, please consult your principal and verify it.

Unlikely to happen, as most of us would prefer to prevent accident from happening.

e.g. kidney disease and need to follow up regularly. Check the fine prints again whether the insurance covers pre and post treatment, like dental checkup (for chemo patients), blood test, biopsy, etc.

Unlikely to happen, as most of us would prefer to prevent accident from happening.

Yes, and later after a few months/years, they decide to terminate the policy. Zero/Negative returns .