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