Why you should buy MLTA and not MRTA?

Basically there are two types of mortgage insurance available in the market, Mortgage Reducing Term Assurance(MRTA) and Mortgage Level Term Assurance(MLTA).

MLTA is a slight variation from MRTA and offers an alternative for a borrower who is looking for a life insurance which offers protection plus savings and in some policies returns on the premium.

In a nutshell MLTA offer level/consistent protection, allow you to buy/sell property using the same MLTA protection & offer cash back and interest comparing to MRTA.

Also please note that most of the times, it is not compulsory to buy MRTA from the bank that you get the housing loan with, if the banker tell you so please get in touch with us.

The table below shows the different between MRTA and MLTA

  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 RM0 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 RM1,186.34 RM607.2 monthly or RM7,286.4 yearly or RM218,592 throughout the tenure
Example if there is no death or TPD* At the end of tenure owner will received RM0 At the end of tenure, owner will received RM218,592
Example if there is death or TPD** Insurance company will pay the loan balance of RM372k to the bank & beneficiary will received the home. Insurance company will pay the loan balance of RM372k to the bank & beneficiary will received the home plus RM100k cash.
  MRTA’s Disadvantages
  • Protection decreases annually Floating BLR rate = may cause unsufficienty coverage & need continuous housing loan
  • No Cash Value
  • Not Transferable To A New Property
  • Can’t Help You Save on Loan Interest & Shorten Loan Tenure




 MLTA’s Advantages
  • Level Term Protection
  • Guaranteed Cash Value
  • Transferable To A New Property
  • Help You Save on Loan Interest & Shorten Loan Tenure

基本上有两种类型的抵押贷款保险提供在市场上，递减式抵押贷款定期保险 (MRTA) 和平衡式抵押贷款的定期保险 (MLTA)。

MLTA与MRTA之间有着一点不同，它提供给借贷者更灵活性的选择；例如：在拥有保险保障的同时，也享有储蓄的好处或带有保费回购的保单计划。

总而言之，MLTA 提供一个平衡式的保障。无论你买或卖产业，都可以运用同一份的 MLTA；同时当您决定要退保这份计划时，我们也提供现金价值给您。

请注意在大多数情况下，您是不被强制一定要从您所借贷的银行购买 MRTA的，如果该银行告诉你这样，请与我们联系。

以下图表显示了 MRTA 和 MLTA 的分别。

  MRTA MLTA
目的 保障 保障，储蓄和现金价值
保障 保障逐年递减。浮动的贷款利率可能会导致保险在保障上的不足，因此您有必要补足尚欠的剩余房贷差额 在借款期，保障是平衡式的
可转让性 不可转移去另一个新购产业。保费会随着年龄而增加 可转移去另一个新购产业。一个 MLTA可以紧随於任何的借贷
现金价值 没有现金价值 现金价值是受“保证”的。某个年限之后，保单持有人将可领取回已缴交的保费
受益人 受益人是银行 受益人可以是任何人
付款 整笔付款或放进银行的借贷数额里 付款方式可以每年，每半年，每季或每月
保费 低 略高於 MRTA
Example on premium* One time RM1,186.34 RM607.2 monthly or RM7,286.4 yearly or RM218,592 throughout the tenure
Example if there is no death or TPD* At the end of tenure owner will received RM0 At the end of tenure, owner will received RM218,592
Example if there is death or TPD** Insurance company will pay the loan balance of RM372k to the bank & beneficiary will received the home. Insurance company will pay the loan balance of RM372k to the bank & beneficiary will received the home plus RM100k cash.
  MRTA’s Disadvantages
  • Protection decreases annually Floating BLR rate = may cause unsufficienty coverage & need continuous housing loan
  • No Cash Value
  • Not Transferable To A New Property
  • Can’t Help You Save on Loan Interest & Shorten Loan Tenure




 MLTA’s Advantages
  • Level Term Protection
  • Guaranteed Cash Value
  • Transferable To A New Property
  • Help You Save on Loan Interest & Shorten Loan Tenure
Learn more about MLTA
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