Mortgage Reducing Term Assurance (MRTA)

MRTA Chart - Prestige Realty

Protection: MRTA gives you protection which reduces over time until it reaches zero. MRTA was compulsory in the past. However, today, you have more flexibility on choosing your property asset risk planning.

Durations: 5 - 35 years (up to maximum home loan duration)

Cost: Approximately RM3,500 for every RM100,000 protection. (One time payment / Lump Sum)

Pros Cons
MRTA is lower cost in terms of total premium MRTA in Malaysia does not cover critical illnesses (only death and Total Permanent Disability [TPD])
MRTA can be bundle together with your home loan to reduce additional cash expenses No Cash Value. Even if you cancel earlier, your may get back only a small % of premium paid (closer to zero when nearning the last year of MRTA)

Mortgage Level Term Assurance (MLTA)

MLTA Chart - Prestige Realty

Protection: Compare to MRTA, MLTA offer the same or slightly higher protection value

Durations: As long as you need the coverage. (At the minimum, coverage for 30 years available).

Cost: Approximately RM400 for every RM100,000 protection. (Minimum RM1,200 per year)

Pros Cons
MLTA gives you the same or increasing protection over time. Cash value accumulation which you can withdraw at any time (or upon ending your MLTA).
Cash value accumulation which you can withdraw at any time (or upon ending your MLTA).
MLTA is tied to your life. If you decided to sell off your property and purchase a new one, you can use the same existing MLTA as risk protection for new property.