Anyone can diffentiate between MRTA vs MLTA. Which one is better?

Hi Ammie,

I have already posted a comparison from your last thread..
Here it is again >

Hi Ammie,
MRTA = Mortgage Reducing Term Assurance = Normally can be purchased from any banks, if you are thinking of protecting your asset against death and total permanent disability. Get advice from your banker as they will provide MRTA loan on top of your housing loan to cover your purchase.
Now, in layman terms, MRTA has a reducing premium over time thus, as you pay your loan, the amount you owe the bank would reduce and the amount you need to be insured for would also reduce. Hence it is an expense item for your personal profit and loss as you dont get a single cent out of it and honestly, come on, what are the odds of someone being approved for loan dying before repaying their loan? I doubt banks are willing to take on so much risk.
My advice to you, refinance your loan ASAP and get an MLTA (Mortgage Level Term Assurance) as by doing so, you reduce your repayment amount and turn your expense (MRTA) into an asset (MLTA). In other words, if something happens to the policyholder, the repayment will be covered by MLTA thus you get to keep your asset, and if nothing happens, you get your money back, and probably with higher interest than what a bank would give. Thus a WIN WIN situation.
Now, a brief overview of MLTA versus MRTA.
1. MLTA = flexi insurance, MRTA = term insurance
2. MLTA = level protection, MRTA = reducing protection
3. MLTA = low initial premium, MRTA = high initial premium (burden)
4. MLTA = tax relief up to RM6000, MRTA = no tax relief
5. MLTA = cash return(asset) MRTA = no cash return (expense)
6. MLTA = transferrable, MRTA = non transferrable
7. MLTA = death/tpd/critical illness + premium waiver, MRTA = death and tpd only
8. MLTA = level premium, MRTA = higher premium if financed by bank as it is tied to BLR
If your property is for investment purpose, MLTA would be a good choice as technically you would be selling the property after a few years and you do not need to repurchase your insurance. Now if you would like to take advantage and receive sound financial advice please feel free to contact me for FREE advice @ 012-2112036, I am a partner with Prudential and naturally, you would want the best assurance for yourself.

Thank You

Wong Sau Wei

Do you just offer Prudential products?

Thanks Sau Wei, i will give u a call when i got my property.

Hi Farin,

I deal with Prudential/Public Mutual/Standard Chartered. What exactly do you need?

Hi Ammie,

Sure, enjoy your shopping.

If I'm applying for a loan from bank, would they have the option of MLTA?
Pls advise as I'm shopping for a flat to buy kinda of urgently.
TQ

Hi Jasmine,

Usually a subsidiary of the bank (bancassurance) would be able to offer MLTA but it does not apply to all banks. Nevertheless, MLTA is a form of insurance thus dont you think you should look for it from an insurance company:- which will ultimately offer better protection at a lower price?