“Getting the right housing loan was your first step providing a dream home for your family. Now, the next important step is to protect it with the right housing insurance.”

 

There are 2 types of mortgage insurance which confusing house buyer, they are:

MORTGAGE REDUCING TERM ASSURANCE (MRTA)

  • Reducing term: The coverage will reduce slowly according to the outstanding balance of your mortgage until it reaches at the end of your mortgage.
  • NONE cash value: It has reducing cash value, which drops to zero at the end of the loan tenure.
  • Bank is the beneficiary of MRTA policy: Bank receive the pay-out in the event of death or total permanent disability (TPD) of the main mortgagee.
  • Your family members will not receive any cash value or benefit above and beyond your outstanding mortgage being settled directly with the bank.

MORTGAGE LEVEL TERM ASSURANCE (MLTA)

  • Level term: The coverage amount does not reduce to zero over the term. It stays level as initial.
  • Cash Value: Yes. It has a fixed cash value (guaranteed) throughout the loan tenure.
  • Bank is NOT the beneficiary: You can nominate someone in your family to receive the pay-out in the event of death or total permanent disability (TPD).
  • Your family will receive any cash value or benefit above and beyond your outstanding mortgage being settled.