Author Topic: MLTA (A better house protection)  (Read 34145 times)

Offline Voon Ho

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MLTA (A better house protection)
« on: June 03, 2011, 12:24:49 AM »
A lot of people heard about MRTA right?
Has anyone came across MLTA (Mortgage Level Term Assurance) before?
It's a house protection offered by Great Eastern (I'm an agent there, and proud to be)
Does anyone actually know the difference? (hahaha im kind of challenging u guys)

Offline venven81

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Re: MLTA (A better house protection)
« Reply #1 on: June 03, 2011, 12:00:04 PM »
One can always opt for ILP as MRTA/MLTA replacement. Why? Simple.
1. The coverage is LEVEL throughout the whole tenure. MRTA coverage reduces over time.
2. It covers critical illness. Both MRTA and MLTA don't. In other words, ILP provides more comprehensive coverage.
3. ILP is transferable. For e.g. once you have fully settled the loan for House A and you'd like to buy House B, you can always transfer the ILP purchased for House A to House B at the same premium because you purchased the first ILP at younger age.
4. Say after 30 years, you have finished servicing the housing loan, what you get is:
   (i) a house. the one that you purchased, and
   (ii) another house. "what do you mean?" well, with the cash value in your ILP, its value is similar to you having another house but in a better form,  cash.

have a thought and see whether this is a better option for you or not. cheers.
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Offline Salahdin

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Re: MLTA (A better house protection)
« Reply #2 on: June 04, 2011, 09:08:26 AM »
VenVen,

          From the angle of 'Cost', is MLTA far more expensive than MRTA?  What if I uses Life policy tocover my house instaed of MLTA.  Is it advisable to do that?  Thanks.
The worst way of learning is to keep all the knowledge to yourself.  So, share it to others as they would to you.

Regards;
Salahdin (The Great Caliph of Baghdad)

Offline venven81

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Re: MLTA (A better house protection)
« Reply #3 on: June 05, 2011, 02:48:39 PM »
VenVen,

          From the angle of 'Cost', is MLTA far more expensive than MRTA?  What if I uses Life policy tocover my house instaed of MLTA.  Is it advisable to do that?  Thanks.

hi salahdin,

you're right. MLTA's premium is higher than that of MRTA due to a few factors:
1. MLTA provides level sum assured throughout the tenure
2. it also gives you back some cash value after certain period (the premium paid)

you could use life policy to replace them but it all depends on the purpose of your purchasing the property; is it for your own stay or for investment where you foresee to let go in a few years' time.

what type of life policy are you talking about? does it cover life/TPD only or critical illness included as well? is budget one of your concerns in getting this insurance? well there are many more factors that you should be looking into before proceeding with it. please check with your friendly agent to get more info  :)
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Offline sangkancil

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Re: MLTA (A better house protection)
« Reply #4 on: June 11, 2011, 06:12:19 PM »
A lot of people heard about MRTA right?
Has anyone came across MLTA (Mortgage Level Term Assurance) before?
It's a house protection offered by Great Eastern (I'm an agent there, and proud to be)
Does anyone actually know the difference? (hahaha im kind of challenging u guys)

i didnt buy any mrta/mlta... still bank approved my loan...

Offline venven81

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Re: MLTA (A better house protection)
« Reply #5 on: June 13, 2011, 02:17:49 PM »
i didnt buy any mrta/mlta... still bank approved my loan...

MRTA is not mandatory under Bank Negara's ruling. Sometimes it is the banks that make it compulsory for borrowers to take MRTA from them. Remember, the main reason behind taking up a mortgage insurance is to safeguard your family members that in the event of misfortune/mishap strikes, there's this emergency fund ready to be used to pay off the bank loan.
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Offline sangkancil

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Re: MLTA (A better house protection)
« Reply #6 on: June 19, 2011, 09:03:47 PM »
MRTA is not mandatory under Bank Negara's ruling. Sometimes it is the banks that make it compulsory for borrowers to take MRTA from them. Remember, the main reason behind taking up a mortgage insurance is to safeguard your family members that in the event of misfortune/mishap strikes, there's this emergency fund ready to be used to pay off the bank loan.

its important.. but as i wanted to cut cost... i rather not to buy it...mabe in future will look into it...might have new product...

Offline Voon Ho

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Re: MLTA (A better house protection)
« Reply #7 on: June 19, 2011, 11:56:46 PM »
VenVen,

          From the angle of 'Cost', is MLTA far more expensive than MRTA?  What if I uses Life policy tocover my house instaed of MLTA.  Is it advisable to do that?  Thanks.
Yes indeed, MLTA is more expensive than MRTA, but good thing always come with good price right? You cant expect buying a BMW with a proton waja's price right?

and FYI, MLTA is a life policy as well

Offline venven81

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Re: MLTA (A better house protection)
« Reply #8 on: June 21, 2011, 09:27:29 AM »
its important.. but as i wanted to cut cost... i rather not to buy it...mabe in future will look into it...might have new product...

i agree with you that it is very crucial to try to cover as many holes as possible. we are responsible for the action or non action we take today and no one else is to be blamed. of course budget is one thing but shouldn't we try to afford it somehow especially this will affect the family members' future well-being?

think about this: if at this very moment this is already causing uneasiness in terms of monetary affordability, what will happen to you (more accurately your family) when you're taken out of the picture one day? who is going to repay the loan? or risk losing the house and your family will have to seek another roof which is totally unimaginable? shouldn't we DO SOMETHING NOW while we still can and give our family what they deserve?

if you are looking for the BEST PRODUCT IN THE WORLD, my advice is, sit back and wait for another 30 years and then look back at all the products that are available and you might just find the best of all. dude, there's no best product in this world. what matters is whether or not this product suits your needs and is affordable to you at that very moment. enough said. 
« Last Edit: June 21, 2011, 09:33:32 AM by venven81 »
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Offline coreB

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Re: MLTA (A better house protection)
« Reply #9 on: June 23, 2011, 03:26:50 PM »
sorry but what is ILP?

Offline venven81

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Re: MLTA (A better house protection)
« Reply #10 on: June 24, 2011, 11:52:52 AM »
sorry but what is ILP?


ILP = investment-linked policy
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Offline blues03

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Re: MLTA (A better house protection)
« Reply #11 on: April 11, 2012, 08:11:01 AM »
what insurance company offer MLTA?I'm interested

Offline jeffwkh

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Re: MLTA (A better house protection)
« Reply #12 on: July 04, 2012, 12:19:15 PM »
hello

how does the bank (loan) and mlta (buy personaly from other insurance company like aia, great eatsre etc...) link together?
what happen is between TPD happen and who will pay the remaining loan bank or insurance company?
what happen if i settle the loan in 10 year will i get the insure money for the 10 years?

please help........

Offline venven81

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Re: MLTA (A better house protection)
« Reply #13 on: July 09, 2012, 05:23:16 PM »
hello

how does the bank (loan) and mlta (buy personaly from other insurance company like aia, great eatsre etc...) link together?
what happen is between TPD happen and who will pay the remaining loan bank or insurance company?
what happen if i settle the loan in 10 year will i get the insure money for the 10 years?

please help........

mortgage loan and mortgage insurance will not be linked if you were to get them separately. say for instance you get a mortgage loan from BANK ABC, it's not very likely that they want you to show them proof that you have already obtained insurance to cover the loan amount. But in cases where they do, then you just gonna show them that you've already had insurance from COMPANY XYZ that can be used to cover the loan should mishap happen. I doubt that the bank will want you to assign the insurance policy to them because so far i have not heard of such cases. what you do is get a MLTA/ILP/life policy like how you'd normally get one and that's it. if TPD were to happen, the insurance money is paid to the beneficiary (most likely it'll be your loved ones) and s/he will use the money to pay off the balance of the loan amount.
Prudential for your protection & investment needs

Offline MasterMind

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Re: MLTA (A better house protection)
« Reply #14 on: September 14, 2012, 12:06:48 AM »
Buying MLTA separately from the bank loan, no assignment required most of the time.

Estate Planning is the answer to ensure the MLTA serve its purposes.

Chong KH
MSolutionsAdvisory.com
Financial Planner ~ Mortgage Advisor
Blog: MSolutionsAdvisory.com