Mortgage Reducing Term Assurance vs MLTA

Mortgage Reducing Term Assurance

This is a type of insurance policy designed to pay off the remaining balance of a mortgage if the borrower passes away or becomes permanently disabled. It’s commonly used to protect homeowners and their families from financial hardship.

 

MRTA Why do your need it?

Mortgage Reducing Term Assurance (MRTA) is a type of insurance designed to protect your home loan. Here are some key reasons why you might need it:

  1. Financial Protection: MRTA ensures that your outstanding mortgage balance is paid off in the event of your death or total permanent disability. This means your family won’t be burdened with mortgage payments during such difficult times
  2. Peace of Mind: Knowing that your home loan will be covered can provide peace of mind, allowing you to focus on other aspects of life without worrying about the financial implications of unforeseen events
  3. Requirement by Lenders: Some lenders may require you to have MRTA as part of the mortgage agreement. This is to ensure that the loan is secured even if something happens to you
  4. Single Premium Payment: Typically, MRTA involves a single premium payment, which means you pay once and are covered for the entire duration of the policy

 

 

Option Types of Mortgage Insurances

In Malaysia there are two types of mortgage life insurance available which is Mortgage Reducing Term Assurance (MRTA) or Mortgage Decreasing Term Assurance (MDTA) and Mortgage Level Term Assurance (MLTA).

MRTA (Mortgage Reducing Term Assurance)

  1. Coverage: The coverage amount decreases over time, in line with your outstanding loan balance
  2. Purpose: Primarily designed to pay off the remaining mortgage in the event of death or total permanent disability (TPD)
  3. Beneficiary: The bank is the beneficiary, ensuring the loan is paid off.
  4. Premium: Typically, a single lump sum payment is made at the start of the policy
  5. Cost: Generally more affordable compared to MLTA

 

Conclusion: MRTA is suitable if you want a straightforward, cost-effective way to ensure your mortgage is paid off in case of unforeseen circumstances.

MLTA (Mortgage Level Term Assurance)

  1. Coverage: The coverage amount remains constant throughout the policy term
  2. Purpose: Provides both mortgage protection and additional benefits like savings and potential returns on premium.
  3. Beneficiary: You or your family can be the beneficiaries, offering more flexibility in how the payout is used
  4. Premium: Premiums are paid regularly (monthly or annually)
  5. Cost: Higher premiums due to the added benefits and consistent coverage

 

Conclusion: ideal if you prefer a policy that offers additional financial benefits and flexibility for your family.

 

抵押贷款减额定期保险

是一种为财产贷款借款人提供财务保护的保险单,以帮助在借款人死亡或完全/永久残疾的情况下解决未偿还的贷款金额
这种住房贷款人寿保险本质上是为所有有抵押贷款的人,特别是单独养家糊口的家庭提供的一种保护机制。

一般来说,如果住房贷款借款人过早死亡或残疾(特别是如果他或她是主要收入来源),幸存家庭成员面临的最大问题是他们偿还未偿还贷款的能力。在许多情况下,幸存的家庭成员甚至可能需要以低于竞争力的价格出售财产,只是为了还清未偿还的金额。

通过加入这项保险,幸存的家庭成员将不会再承受这样的负担,因为它涵盖了部分或全部住房贷款的未偿还部分。

我需要哪种抵押人寿保险?

在马来西亚,有两种类型的抵押人寿保险 - 抵押贷款减额定期保险 (MRTA) 或抵押减额定期保险 (MDTA) 和抵押贷款水平定期保险 (MLTA)。

然而,MRTA 和 MLTA 经常被误解。作为房主,您需要什么?

MRTA 是一项人寿保险计划,保额会随着时间的推移而减少,它仅用于偿还您欠银行的住房贷款。该计划通常由您获得抵押贷款的银行提供,因为它可以在您因不幸而无法偿还贷款时为银行提供保护。

另一方面,MLTA 与 MRTA 略有不同,它为寻求人寿保险的借款人提供了另一种选择,该保险提供保障和储蓄,在某些保单中还提供保费回报。这是一项个人计划,当您去世或失去创收能力时,您和您的家属将受到经济保护。

MRTA 最适合那些拥有充足的独立人寿和医疗保险且没有太多经济依赖的人。这种类型的保险仅在您的住房贷款因 TPD 或死亡而无法全额偿还的情况下才可承担。在这些事件中,您的家人不会从保单中获得一分钱,因为受益人是银行,而不是您的家人。

MLTA 最适合那些在最坏的情况下需要额外财务保护的人,因为它在保单结束时也具有现金价值。这对于那些有许多经济依赖者的人来说是最好的,例如年幼的孩子和全职配偶。