MRTA and MLTA

Recently, I found that most of people who buying house, will consider takes the MRTA from Banks. However, after i do some survey, most of them not 100% understand what MRTA is. They just know if "something unexpected" serious happen, then MRTA will activate and help them to settle the house loan from Bank. But, what is the meaning "something unexpected" serious happen?
Let me explain what are the different between MRTA and MLTA:

MRTA vs MLTA

Mortgage Reducing Term Assurance (MRTA) : - one of term assurance

1. Coverage: ONLY cover death or Total Permanent Disabilities
2. The coverage always reducing as every year the mortgage loan is settled, and become lesses and lesses. For example:
3. 
4. Question will appear if this situation above happens (critical illness)
• If I need RM 100,000 for surgical operation, do i have enough money to cover my life expenditure?
• If NO, how? and who can help me in this critical minutes?
• Who can cover my life after the surgical operation? My house loan need help, who can help me?
• How about others e.g. life expenditure : Car installment, Loan/ Debts, children education and etc? Will the employers will consider me to take long day off after my surgical operation? Properly NOPE. Then, how we survey and continues our life?
• If YES, congratulation. But, will you select to cover your surgical fees or life expenditure?
5. There will be good if we able to settle everything without happen any critical. But MRTA has no saving concept, and it is a term insurance. So, after 2 5 years later, you will just have a house. Maybe at that time, you need money for retirement or child education fees?
6. If really unfortunately, i really left the beautiful world earlier stage reluctantly,and MRTA will cover the balance of mortgage loan, BUT how about our family, especially wife and children life style? What we give to them once we pass away in earlier stage? House or you think is it realistic to left some money for them to cover another 5 years or 10 years?
7. Today, many of us can consider get more than a house for investment purpose. For MRTA, we need to register new account every times we get a new house or shop. It depends to the number of house we have!
8. No Tax Relief
9. Cheaper than MLTA

Mortgage Level Term Assurance (MLTA)

1. Coverage: Death or Total Permanent Disabilities or 36 critical Illness
   
2. The coverage always remain the same and level or increase, depend on which product intro by agent. For example:
3. 
   
4. Question will appear if this situation above happens (critical illness)
• MLTA does cover critical illness, and hence we not need to worry where we can get the money or think who to ask to help in critical time. We just worry whether amount is enough or not
• If today we need RM 100,,000 for the surgical operation, after the MLTA activate, we can claim RM 300,000 ++, so RM 100,000 for surgical operation; RM 200,000 for the housing loan and we can re-financing and settle it fast
• We will not worry about our daily expenditure in short term, and not worry where to get money to settle mortgage loan and life expenditure while we rest at home and can't work
• If today the coverage I can claim is more than balance mortgage loan, properly i can adjust and settle my debts e.g. car installment
5. Saving concept in MLTA; we can withdraw saving part after completion of the mortgage installment; or continues this converage as our whole life protection.
   
6. If today we are unlucky and pass away in earlier stage, MLTA can claim the original amount (RM 300,000) and after settle the balance mortgage amount, the balance we can left and give to our wife or children to support them
7. Nowadays, many of us can get more than a house for investment purpose. For MLTA, we may not to register a new account for each new house or shop, as long our MLTA manage to cover the amount that we want to borrow from financial instrument. MLTA basically cover personality, and cover for numbers of house
8. Yes, Tax Relief
9. Expensive than MRTA