The Differences Between MRTA and MLTA

What is MRTA and MLTA?

Mortgage Reducing Term Assurance or MRTA is an insurance policy that gives money related insurance to property credit borrowers and their families. In particular, it helps settle remarkable sums in case of death or total permanent disability.

MLTA which is stands for Mortgage Level Term Assurance is another type of mortgage assurance. It offers something other than reimbursement of your remarkable home loan balance. It is also additionally causing you guarantee your friends and family get some money payout. It is frequently observed as an option in contrast to extra security as it offers both insurances just as money advantage.

Buyers who purchase real estate may also get the wrong information when they are considering or selecting a home loan and do not know how to make choices. Below is the further explanation on MRTA and MLTA.




The advantage

It provides the owner with mortgage protection.

It has the same guarantee and more savings and cash value.

Payment method

Lump sum payment in cash or include in a housing loan and interest rate applies.

Regularly. Can pay on a monthly, half yearly or yearly basis.

The protection

The amount of insurance will be reduced periodically.

The sum insured remains unchanged.

The coverage

Mortgage loans.

Mortgage loans, including life insurance, and optionally include 36 types of critical illness protection.

Insurance category

Term insurance.

Term insurance, or lifetime insurance.

The transfer



Nomination of beneficiary



Below is the example to give a clear picture of the differences between MRTA and MLTA.





25 year

25 year.

Mortgage loan



Time period

30 years

30 years

Interest rate




Lump sum = RM16,290.00

Yearly = RM2,554.20

Half yearly = RM1,302.65

Quarterly = RM657.70

Monthly = RM223.50

Amount of insurance

RM540,000: periodically reduced, limited liability coverage or death, the insurance company will compensate the bank for unpaid loans.

RM540,000 plus other guarantees, so the insurance amount will be higher.

Cash back (loan expiration)


Yes. Get the cash back based on the return on investment.


This is a guarantee to the borrower, either MRTA or MLTA. In case, the borrower has the unfortunate accident, the insurance company will pay the mortgage which has not been paid to the insured. The difference is MLTA provide an adequate protection. When MLTA is purchased, in the event of an accident of life, your family will receive insurance compensation and used the money to pay for any purposes, including home loans.


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