mortgage.jpg

Mortgage Insurance

If you lose your job or are unable to work through accident or sickness, mortgage payment protection insurance will cover the cost of your mortgage repayments. Keep your dream home and maintain your family's lifestyle. Reduce your family's financial burden & the amount of capital you may lose.

 

What does a mortgage payment protection policy cover?

There is varying mortgage payment protection insurance available, depending on what you want to be covered for. Mortgage payment protection is designed to help you pay off your remaining liability to the bank if you cannot do so anymore. The best gift of security that you can give your family.

1. Death

2. Total permanent disability (TPD)

3. Critical illness

This will cover your mortgage, which pays out in the case of death.

Offers your family members a lump sum payment in the event of a TPD

This most comprehensive policy will cover your mortgage repayments if you lose your job due to a critical illness.

 

In Malaysia, there are two types of mortgage life insurance available –

 

Mortgage Reducing Term Assurance (MRTA) or  Mortgage Level Term Assurance (MLTA).

However, MRTA and MLTA are often misunderstood.

Which do you need as a homeowner?  The table below is a comparison of the two policies.

mrta-vs-mlta1.png
 
 

Why should you buy MLTA over MRTA?

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, plus returns on the premium.

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

MRTA’s Disadvantages:

  • Protection decreases annually Floating BLR rate = may cause insufficient 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

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 me. We can arrange an appointment for the matter.

m1.jpg

How much does mortgage payment protection insurance cost?