Mortgage Level Term Assurance (MLTA) vs Mortgage Reducing Term Assurance(MRTA)

Mortgage Reducing Term Assurance    MRTA Mortgage Level Term Assurance    MLTA
  • Cover will reduce throughout loan tenure (cover Outstanding loan)
  • No cash returned
  • Cannot transfer when refinance/new purchase
  • Cover stop after loan tenure end (cover expired at 65)
  • Can finance into loan but need to pay interest
  • No Guaranteed to settle outstanding balance (because Outstanding balance affected by BLR fluctuation but MRTA amount no)
  • High initial premium (Higher premium according to aging)
  • No installment (One time payment)
  • An expense/a liability
  • No tax relief
  • Cover remain fixed throughout loan tenure (cover Principal loan)
  • Have cash return
  • Can transfer when refinance/new purchase
  • Cover continue after loan tenure end (cover till 100yo)
  • Cannot finance into loan therefore no need to pay extra interest
  • Guaranteed can settle outstanding balance (MLTA amount always > Outstanding balance)
  • Lower initial premium (Premium fixed even aging)
  • Can pay by monthly installment
  • MLTA amount will paid to settle loan upon diagnosed of 36 critical illness
  • An investment/an asset
  • Tax relief RM7,000

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