Mrta vs mlta
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MRTA, MLTA... Which is your preference? 


Mortgage insurance also come in different types. At present, there are two: the Mortgage Reducing Term Assurance (MRTA) and the other one is the Mortgage Level Term Assurance (MLTA).


MRTA vs MLTA

To start you off; here's the differences between the two insurance types. 

MRTAMLTAPurposeProtectionProtection, Savings and/or cash valueCoverageCovers the outstanding housing loan on a decreasing sum assured basis
Covers the outstanding housing loan on a fixed level sum assured basisPaymentLump sum payment by cash or financed into housing loanPaid periodically on a monthly, quarterly, semi-annually or annual basisTotal PremiumLowerHigherNominationBank is the beneficiaryAnyone can be the beneficiaryTransferabilityNoYesSuitable for*Where buyer aims to own the house in a longer termWhere buyer is expected to sell the house in short-term

*The line on suitability is just a suggestion. As always, you’re welcome to choose whichever makes you comfortable. After all, insurance is supposed to make you feel comfortable in the event of a calamity.

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MLTA or MRTA is mortgage term insurance, not investment link insurance. 

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I believe there is no MLTA which does not tie to investment linked policy. Else how insurance company able to provide such high value protection for a lower premium?

However, some owners still prefer it but need to hold on to the MLTA for 10 to 20 years to at least break even and get money back . 

I personally would strongly discourage MRTA . In fact banks does not require it anymore for their bank loan 


My 2 cents. Correct me if I am mistaken . Thanks . 

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To take MRTA or MLTA, which one to choose, depends on individual needs and what is the insurance coverage at this moments. 

Term insurance is cheaper because it provides only basic coverage (Death & TPD), and based on the term (year) of coverage. Unless you add other riders such as Critical Illness, then you need to pay more. 

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@jdh thanks for sharing