MORTGAGE REDUCING TERM ASSURANCE (MRTA)
Source: Malaysia Bar Council, Maybank2u.com.my
What is MRTA?
Mortgage Reducing Term Assurace (MRTA) is also frequently referred to Mortgage Life Assurance. MRTA provides for full settlement of the outstanding balance of the housing loan with the financial institution, in the event of TPD also known as total permanent disability or death of the borrower. It gives you peace of mind and protects your family from losing a home.
The premium is reasonable, and it can usually be included in the loan amount, and the repayment period of the premium is usually spread over the loan tenure. The premium is only incurred once. There are no monthly or yearly premiums to be paid. In the event of early termination of housing loan, you will generally have the option to request for a refund of the premium for the balance of the unexpired period or to continue the insurance coverage.
Benefits at a Glance
- Guaranteed Benefit To Settle Your Mortgage Balance
- MRTA simply ensures that your mortgage will be settled and thus securing the repayment to your housing loan. A guaranteed benefit payment (based on the table of reducing sum assured) becomes payable upon death or TPD (subject to standard exclusions on death or TPD).
- Liberal TPD Definition
- If you cannot perform your own or similar occupation by training, education or experience for a period of six consecutive months, the TPD benefit becomes payable. While, in other MRTA plans offered, the TPD benefit only becomes payable if a borrower cannot perform any work to earn a living for the rest of his/her lifetime.
- Guaranteed Acceptance
- Acceptance is guaranteed for loan borrowings up to RM150,000 and entry ages up to 50 years next birthday subject to a pre-existing condition. No medical is needed and no hassle.
- Flexible Coverage
- Equally applicable for completed properties and properties under construction (i.e. Full level term coverage during the period of construction).
- Worldwide Coverage for 24 hours
- Receive protection 24 hours a day, anywhere in the world.
- Single Premium Payment
- Enjoy full protection by paying a one-time single premium for the entire duration of your loan.
- Premium Financing
- Pay your single premium by amortizing it over the period of your loan with premium financing. Premium financing eases your load and making it very affordable to you.
This is basic information to help you understand about MRTA. Different banks may have vary information. For more enquires, please contact your local bank.
Note: Wawasan Properties takes no responsibilities for any mistakes made above and does not guarantee the accuracy of the information provided.