agreed with most opinion here. there is no right or wrong for MRTA and MLTA. it's all depend on individual need. but at least i learn new thing which MRTA can be transferable to another prop. great info.

Yes usually if you buy outside separately..... it can be done.

Just changing the "beneficiary" basically.

I look at it from different aspect. Yes, if bundled with loan there is interest of RM9.5K, or more if interest rate goes up. However this is to be spread over 30 years (it would be different story if you cancel the loan at early years). When time value of money is factored in, the interest payment is minimal and you are rest assured the the property is covered regardless of the high and down time in your life (bear in mind that MRTA may not fully settle the loan as the principal+interest amount are affected by interest rate, if interest rate goes funny borrower needs to pay for the increased interest payment after the MRTA claim settling the loan). MLTA would be considered as a commitment that requires you pay annually, it would be insignificant when you're sailing through later stage of your life well but life is full of surprises that bombards you with changes. Because of that, I try to put in certainties (as much as possible) in my planning and my clients' planning. Again, life is full of changes, if macro problems come in and affect my plannings, I would at least have a clear conscience to face my clients.

It all depends on how you see it

I made a calculation before in my previous posting... which you may search through my profile..

MRTA due to the interest I am committing about RM 61 per month which is also quite high as a commitment.. But it all depends on you personally..

I made that calculation and decision based on what suit me. I know I am surely going to get 1 more insurance premium in future for myself and why not I make it this 1 shot rather committing 30 years + interest for MRTA. In the event if I am going to sell the house, the surrender value is pretty minimal.

Not to forget you are entitled for tax relief. If tax relief for EPF + Life is full. You can always park 60% into your medical/education portion of maximum RM3000.

Cheers

This post has been edited by davidlow7: Jun 15 2012, 11:24 AM

I have recently did a refinance from Bank A to Bank B. Following the refinance, housing loan with Bank A was fully settled. With that, the Bank insurance unit sent me a letter saying that my MRTA policy is automatically assigned to my personal name and will be continue to be in force up to the expiry date.

What does this mean? It is better for me to cancel it and ask for refund?

I got my loan previously from hlb, mrta 5/15 due full settlement how much can get cos last time I remember only 3k plus for my mrta.

3k plus, passed for how many years already till now?
Did you get any printed copy of the reducing term amount schedule?

Passed 5 years to 5.5 years around there out of 15 years.

This post has been edited by re_freako: Sep 18 2012, 03:10 PM

I made some assumption,
assumed loan interest rate quoted: 7%, 15 years loan, 8 years done fully-settlement, rm3,500 MRTA you bought for 15-years in full (no construction period), age back then: 30+.

You should be able to get back roughly RM1k~RM1.2k.

wondering how long to get the refund?

hi all,

I finance my MRTA into the loan, currently im doing refinance, can I get back the surrender value of the remaining MRTA $?

Thanks
Chan

Yes, you get back your pro-rated premium that you've paid. If you're refinancing, your new bank has to fully pay off the bank first and then get a redemptive statement and notify the old bank to release the MRTA and then subsequently call up the insurance company that provided the MRTA to refund it to you.

Thanks lifebalance.
However, I checked with my new bank (Refinance), they said it will be lapse, as no cash value of MRTA.

Depends on how long was ur mrta tenure. If you bought a really short term mrta then chances are the pro rated premium is really low or none at all.

I would advise you to get mlta for better long term coverage and cheaper cost

It's not cash value as in MLTA. What you get back is the unearned premium.

But i check with my new banker, they say the MRTA is lapse . So which one is correct..

Thx
Chan

Lapse ?

Mrta has no lapse

Only expiry of the tenure as you've paid 1 lump sum so it doesn't lapse

MRTA will burn if refinance/ switch to other bank as there is no cash value, this is the information I got from the bank.

Furnish me the details on this to evaluate

Example if I take 100K loan, and buy 100K MRTA for 30 years.
let say during second year i pay a lump sum 50K extra to settle the loan, and I passed away on third year.
Does MRTA insurance help me to settle remained loan and refund extra amount back to my love one?