MRTA
MLTA
Purpose
Protection
Protection, Saving &
Cash Value
Protection
Reducing Protection
throughout the loan tenure.
Protection is leveled
throughout the loan tenure.
Transferability
Non transferable on New
Purchase or Refinance. Premium will increase while age increases.
Transferable. One MLTA
can be attached to Any Loan. Transferable on New Purchase or Refinance.
Cash Value
Reducing Cash Value
throughout the loan tenure. Normally is much lower than Premium, and drop to
RM 0 at the end of loan tenure.
Fixed Cash Value
(Guaranteed) throughout the loan tenure. Policy Holder will get back the paid
premium in the future.
Nomination
Beneficiary is bank.
Beneficiary can be
anyone.
Payment
Lump Sum Payment or
financed into Mortgage Loan.
Payment Mode can be
Annually, Semi Annually, Quarterly or Monthly.
Premium
Low
High
Example on premium*
One time RM 1,186.34
RM 607.20 monthly or RM
7,286.40 yearly or RM 218,592 throughout the tenure
Example if there is no
death or TPD*
At the end of tenure
owner will received RM 0
At the end of tenure,
owner will received RM 218,592
Example if there is death
or TPD*
Insurance company will pay the loan
balance of RM 372k to the bank & beneficiary will received the home.
Insurance company will pay the loan
balance of RM 372k to the bank & beneficiary will received the home plus
RM 100k cash.
MRTA's Disadvantages
MLTA's Advantages
* Protection decreases
annually Floating BLR rate = may cause unsufficienty coverage & need
continuous housing loan.
* Level Term Protection.
* No Case Value.
* Guaranteed Cash Value.
* Not Transferable To A
New Property.
* Transferable To A New
Property.
* Can't Help You Save on
Loan Interest & Shorten Loan Tenure.
* Help You Save on Loan
Interest & Shorten Loan Tenure.
