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Protect your properties for your love ones by getting your home loan protection scheme.

MRTA = Mortgage Reducing Term Assurance
MLTA = Mortgage Level Term Assurance

Buying a house is one of life’s achievements, which is a visible legacy for your present and future. However, unexpected events may lead to loss of income or a decreased ability to fulfill loan obligations. An Mortgage Reducing Term Assurance (MRTA) or Mortgage Level Term Assurance (MLTA) safeguard your home for you and your family.

Mortgage Reducing / Level Term Assurance Plan (MRTA/MLTA)

MLTA or MRTA plan will ensure repayment of your outstanding mortgage in the event of Total Permanent Disability (TPD) or loss of life.
The Insurance will take care of your loved ones with these affordable protection plans for your home loan. Rest assured that your ongoing loan repayments will not financially “burden” your loved ones.

MRTA Explained

Example:

  • Loan Amount: RM 300,000.00
  • Loan Tenure: 30 years
  • Outstanding loan amount (at point of death / TPD): RM250,000.00

mrta

For the chart above, the coverage of the insurance will reduce annually from RM300,000 to zero at the end of the loan tenure. This mean that if anything happened in this period the insurance company only  payout the claim according to that year coverage.  Example, for the above cases, when the  Insured passed away or TPD at 9th year with a outstanding of RM250K, the insurance company will payout RM250k to the lender/bank and the remaining RM3k if any to the nominee (s) of the Insured (Assumed that the coverage is RM253k that time). Noted: (Different Insurance company will have a different schedule of TPD claim payment).

MLTA

Example:

  • Loan Amount: RM 300,000.00
  • Loan Tenure: 30 years
  • Outstanding loan amount (at point of death / TPD): RM250,000.00

mlta

For the chart above, the coverage of the insurance remain at RM300,000 until end of the loan tenure. This mean that if anything happened in this period a amount of RM300k will payout by the insurance company.  For the above cases, when the  Insured passed away or TPD at 9th year with a outstanding of RM250K, the insurance company will payout RM250k to the lender/bank and the remaining RM50k to the nominee (s) of the Insured. Noted: (Different Insurance company will have a different schedule of TPD claim payment).

picture-01Get to know more about MRTA premium cost for your home loan? Use our MRTA calculator ..

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This entry was posted on Monday, March 30th, 2009 at 5:18 pm and is filed under Home Loan Tips, Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.