I like Maxwealth explanation. And its true and correct... I believe MLTA or MRTA, agent both also earn commission. Just which type is suitable for you.

For me, I take life insurance to cover for my properties.my idea is that I do not over insure my properties. If I pass away, I will leave these good debts to my family with a sum of money(not full loan sum). This should be enough for them to survive and cover installment for maybe 5yrs. With the properties inherited to them, they can opt to sell or keep profiting on the rental +ve cashflow. There is no need for the properties to be fully paid off after I pass away. If you count the cost, the cost to fully insure 100% of all ur property is too high anyway.

With life insurance to cover loan, I don't have to worry about increased cost of insurance as my age grows when I buy and sell my properties. This is similar to MLTA. Your cost to buy a MRTA to cover 300k loan at ur age now and in 10yrs time is a huge differrence, that is if u have no major illnesses. At 30, u might not need medical checkup to buy insurance. At 40, u will be required to take medical checkup before they approve ur insurance. If any problem with ur health then there will be loadings and also exclusion.

My humble opinion.

This post has been edited by retkev: Jun 6 2012, 05:25 PM