Say if the buyer finish up the loan payment within 10yrs / 30yrs loan and the MRTA previously applied covers for 30yrs , can he/she ask for partial refund of the premium?

Depends on the MRTA. Most of them, yes but my mom's 15years+ loan MRTA no refund. And due to lack of supporting documents, I'm unable to fight for a partial refund.

10years/30years, NORMALLY you can get around 60%-70% refund. Based on latest calculation.

what if I sell the property say after a few years? am i entitled for a refund on the MRTA ?

Traditional MRTA/MLTA offered by Banks.

1. Close to Zero refund or after a big fuss they might pro-rate it.
2. Non-transferable. No choice but to stop and buy new one.
3. Payout of sum assured to the banks first.

New MRTA/MLTA offered by AIA.

1. Guaranteed Cash Refund - Eg. MLTA refunds back 95% on a 15/30 years early settlement.
2. Transferable. Choice to continue the coverage until end of term.
3. Sum assured paid to beneficiaries first.

PM me should you wish to know more.

Thanks. Best regards.

Traditional MRTA normally you still can get refund as long as the loan is terminated either by selling off, full settlement by cash or EPF or refinancing. That's the basic MRTA, if they say no surrender value then ask for any supporting documents regarding the MRTA. The bank is not being honest.

there should be surrender value too for MRTA, but the longer the term goes on, the lesser the surrender value is.

However, MLTA has a very high surrender value, and for 30 yr period, sometimes even got profit from there surrender value less the actual payment.

MLTA is transferable to other proporty as we will acquire bigger property when we grow financially in future, MLTA has this good advantage.
What is more, MLTA sum assured is paid to our beneficiary, not to the bank. Therefore we can decide how to use the payment, if goes to bank, we aint' gonna touch the money at all.

I have a few MLTA products here if anyone of you guys wish to know more, please contact me, i am just a click away right. =)

Dear all, what about MRTA ROP (refund of premium), how does it differ from conventional MRTA? What is the pro & con of it? Thank you

surprisingly hongleong call up to refund the premium OR can transfer as personal insurance.

How many % refund of settlement for 10yrs / 30yrs?

probably around 70-75% for <5yrs settlement. still waiting for the cheque.

What a coincidence mine is also from HLA, I just checked with them, I can get back 67% on 5yr/25yr early settlement

hi all, tx for the great advise on the refund of mrta. i shall ask from scbb since i jst sold one unit of property and see how they answer me.

i was confuse by some blogger saying MRTA is transferable..

now i know it's the NEW MRTA.

MRTA always burn once the the loans clear

yes n no.

Do you think it's a good idea to pay thousands of your money first and wait refund when you early settle your loan? Some more if you integrate the MRTA into your home loan, it will being charge interest... Instead of MRTA, why not getting a MLTA? Just pay hundreds of premium annually then you have thousands in hand for other investment. Even put them into FD can earn you interest of 2.5%p.a...

MRTA - yes pay interest for insurance..

Yes, if you paid lump sump up front. Usually there is cash value within the tenure. Anyway, you can check from the policy.

I do a calculation of RM12.5k MRTA cost financed into loan

this amount is equal to aged 28 - 30 years into 330k loan...

My interest alone will be RM9.5k+ (base on 4.2 interest)

Plus both is going to be RM22k divide by 360 months = RM61+

Why not I just add on some for MLTA since it is just another life policy. If you are still young and do not have insurance, this is a good one to go. If you already have 1, it is likely we won't end with only 1 policy.

With my case, I do consider MLTA is a better option but due to financial constrain, I opt to be covered in both ways. A little in MRTA for fewer years... but and the rest amount in MLTA for as long as I am still paying.

To add on, what if BLR goes higher and your interest will for sure increase, either way MLTA you won't lose out cause you can get back the money however do not strain yourself too much if you can't afford the monthly high premium too. A step at a time.

This post has been edited by davidlow7: Jun 5 2012, 09:20 AM

At times, the monthly commitment of MLTA can kill