/// Contributor
Michael Yeoh
The Mortgage Expert
With over 15 years of experience in the
mortgage and investment industry and
working with prominent companies
such as Standard Chartered Bank,
Hong Leong Bank, HSBC and Hwang
DBS Unit Trust, Michael has helped
thousands of loan borrowers by
providing comprehensive mortgage
advisory and solutions.
Michael regularly conducts mortgage
courses and has produced many
graduates. He is also a regular
columnist and also has being featured
in New Straits Times Press, The Star,
Property Guru and also Property
Hunter magazine. He speaks regularly
in Property Exhibitions, Seminars and
also for developers.
You can get in touch with him at
Website: www.michaelyeoh.com.my
Should I Buy
MRTA or MLTA?
I
have been asked in numerous occasions during or after my seminar whether a loan borrower should
take up Mortgage Reducing Term Assurance (MRTA) or Mortgage Level Term Assurance (MLTA). In this
article I would like to shed some light for the benefits of everyone. I will not be elaborating much on
MRTA in this article as I have already wrote about it at length during my last article. If you would like to
read go to http://michaelyeoh.com.my/mrta/.
I would like to introduce to all of you, Ms Elane Goh, Agency Manager of Hong Leong Assurance who is an
expert in MRTA and MLTA in which I have interviewed her prior to writing this article. Thank you Elane for
being so patient with me.
What actually are the major differences between MRTA and MLTA? Let’s take a look at the following
table summarize from my discussion with Elane. Let’s take a look at the following table comparing the 2
Insurance Products.
MRTA
Protection
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www.PropertyHunter.com.my
Limited: Death & Permanent Disability
Death & Permanent Disability (option
to purchase additional rider)
Claims
While the author makes reasonable
efforts to present information which
he believes to be reliable, the author
makes no representation that the
information or opinions contained in
this article is accurate and complete.
Readers are advised to seek specific
professional advice before acting on
the views.
MLTA
Reducing balance. Based on loan
outstanding amount.
Level throughout loan tenure.
Premium
Cheaper. Paid Lump Sum. Can be
finance by bank.
More expensive. Periodic - monthly,
quarterly or yearly.
Cash Value
No cash value. Expired at the end of
loan tenure.
Policy holder will get back premium
paid.
Transferability
Yes
Yes
Nomination
Beneficiary is bank.
Benificiary is next of kin.