Advertisement Banner

MRTA vs MLTA. Which is better for that property and you?


MRTA vs MLTA. Which is better for that property and you?

One needs you to pay all at one go. Not enough funds… The other one needs you to pay and pay and pay. It’s like paying forever? So, which one is better? Actually, it’s more like which one is more suitable to you. If there’s one which is better, then no one would continue to write all these MRTA vs MLTA articles yeah.

Haha. So, here’s another one and this article is written by where there are NO LINKS anywhere in this article for you to buy any product whether MRTA or MLTA. Happy reading and sharing yeah. Congratulations in advance because if you are interested in reading this, it meant that you are buying a property or thinking of buying one.

MRTA vs MLTA, general differences

There are  two mortgage life insurance that we may consider. They are the Mortgage Reducing Term Assurance (MRTA) and Mortgage Level Term Assurance (MLTA). What would be the differences between them? Let’s look at them briefly.

Mortgage Reducing Term Assurance (MRTA) is a life insurance plan with decreasing sum assured over period of time and it helps to cover our remaining home loan. This is usually offered by banks when we take loans from them. If something were to happen to us during the mortgage loan period and we could no longer repay the loan, the MRTA kicks in and takes care of it.

Mortgage Level Term Assurance is for borrowers who prefers to buy a life insurance which offers both protection plus savings and maybe even returns on the premium. So, this can act like a personal insurance designed to protect you and your dependents in the event of death or TPD which had befallen the borrower causing him / her the inability to continue repaying the home loan. So, which one should we take then?

Differences Between MRTA And MLTA


MRTA is cheaper since it’s one time payment

When we look at the amount, it’s cheaper to get the MRTA.  However, always remember that MRTA provides protection on a reducing balance basis and the beneficiary basically gets just the home. If homeowners are already protected by life and medical insurance and does not have other financial burdens, MRTA is suitable.

MLTA is also cheaper! Since it can be paid by monthly basis

MLTA meanwhile provides homeowners with extra financial protection in the event of death or Total Permanent Disability (TPD) because it has a cash value at the end of the policy. For families with kids or even a housewife spouse, this would provide a better protection.

Protection is beyond just the MRTA or MLTA yeah

Remember though that we should always protect our wealth. There are certainly other types of insurance which we should have beyond just these two; MRTA or MLTA. For example, medical cards will help pay medical and hospital bills (usually unforeseen circumstances) and saves us from using a lot of our own hard earned savings / funds.

There’s also life insurance which is to protect one’s life over uncertainty that may occur at any point in time. Policyholder pays their premium regularly for an agreed amount of coverage and if the specified event such as death or an accident resulting in death or disability, the amount of coverage will be paid.

Get protected yeah. Wealth is not just about earning more but also to stop any potential losses yeah. Cheers.

Property News Malaysia? Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER). Alternatively, Follow me on Telegram here.

Please LIKE FB page to get daily updates about the property market beyond articles. Else, follow me on Twitter here.

Next suggested article: Retirement fund. Retiring without much funds in EPF. Big worry for many

**In Article Advertisements Banner

Subscribe to Blog via Email

Few seconds to subscribe for FREE and get property investment tips, latest financial and property news and more.

Join 1,948 other subscribers.
Motion arrow towards right
Motion arrow towards right
Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.


Advertisement Banner

Facebook Comment

Table of Contents

Most Recent Posts

join the family

Like us for daily investment news and more

Hit the like

%d bloggers like this: