Beware 1 setback of Mortgage Reducing Term Assurance

Beware 1 setback of Mortgage Reducing Term Assurance

One alternative to mortgage-reducing term assurance (MRTA) is mortgage-level term assurance (MLTA). MLTA is a whole life insurance policy that provides coverage for the full duration of the mortgage term. Unlike MRTA, the coverage amount remains constant throughout the policy term, which may provide more financial security for the insured and their loved ones.

MLTA is typically sold by mortgage brokers, insurance agents, or bankers as an alternative to MRTA. It offers a broader range of benefits and flexibility compared to MRTA, including potential cash value accumulation and the ability to use the policy for other purposes, such as income replacement or estate planning.

It’s important to note that MLTA may have higher premiums compared to MRTA due to the longer coverage period and potential cash value accumulation1. The suitability of MLTA as an alternative to MRTA will depend on individual circumstances and needs. Consulting with a financial advisor or insurance professional can provide personalized guidance based on specific requirements.

Beware 1 setback of Mortgage Reducing Term Assurance

Mortgage-reducing term assurance (MRTA) is a type of insurance that is specifically designed to cover a decreasing mortgage balance over time. Here are some pros and cons of mortgage reducing term assurance:


  1. Cost-effective: MRTA is generally more affordable compared to other types of mortgage insurance1. Since the coverage amount decreases over time as the mortgage balance reduces, the premiums are usually lower.
  2. Simplified underwriting: MRTA policies typically have simplified underwriting processes, making it easier to obtain coverage compared to other types of insurance.
  3. Tailored coverage: MRTA policies are designed to align with the decreasing mortgage balance, ensuring that the coverage amount remains appropriate throughout the loan term.
  4. Peace of mind: Having MRTA can provide peace of mind, knowing that your mortgage balance will be covered in the event of death or disability.


  1. Coverage reduction: As the mortgage balance decreases, the coverage amount also decreases over time. This means that towards the end of the loan term, the coverage may not be sufficient to fully pay off the remaining mortgage balance.
  2. Limited coverage: MRTA only provides coverage for the mortgage balance and does not offer additional benefits such as investment or cash value accumulation.
  3. Non-transferable: MRTA policies are tied to a specific mortgage and are non-transferable. If you refinance or sell your home, you may need to obtain a new policy.
  4. Temporary coverage: MRTA policies typically have a fixed term, which means that coverage will end after a specified period. If you still have a mortgage balance at the end of the term, you will need to seek alternative coverage.

It’s important to evaluate your specific needs and circumstances before deciding whether mortgage-reducing term assurance is the right type of insurance for you. Consider speaking with a financial advisor or insurance professional who can provide personalized advice based on your situation.

Beware 1 setback of Mortgage Reducing Term Assurance

Investment Link and Mortgage Reducing Term Assurance are two different financial products with distinct purposes.

Investment Link is a type of investment product that allows you to invest your money in various investment options such as stocks, bonds, and mutual funds. The returns on your investment are dependent on the performance of these investments and can provide potential growth over time. This type of product is typically used to build wealth and accumulate savings for the long term.

On the other hand, Mortgage Reducing Term Assurance (MRTA) is a type of life insurance policy specifically designed to cover the outstanding amount of a mortgage loan. In the event of your death, the policy pays out a lump sum to the lender, reducing or fully eliminating the outstanding mortgage balance. The purpose of MRTA is to provide financial protection to your family and loved ones by ensuring that they won’t be burdened with repaying the mortgage in the event of your passing.

In summary, the Investment Link is for investment purposes, aiming to grow your wealth over time, while Mortgage Reducing Term Assurance is a life insurance policy that covers your mortgage loan, providing financial protection to your beneficiaries. Both products serve different purposes, and it’s important to assess your needs and financial goals before deciding which one is more suitable for you.

Beware 1 setback of Mortgage Reducing Term Assurance
Beware 1 setback of Mortgage Reducing Term Assurance


Beware 1 setback of Mortgage Reducing Term Assurance

One option to protect your housing loan if you are unable to work due to illness is to consider mortgage disability insurance. Mortgage disability insurance is a type of insurance that can cover some or all of your mortgage payments in the event that you can’t work due to illness or injury. This insurance policy provides a benefit specifically for your mortgage payments and can help ease the financial burden of your housing loan while you are unable to work.

Mortgage disability insurance works similarly to regular long-term disability insurance, but it specifically focuses on covering your mortgage payments during your period of disability. It does not pay a percentage of your pre-disability income like regular disability insurance would.

The cost of mortgage disability insurance will depend on various factors such as the remaining balance of your mortgage loan and the length of your loan term. It’s important to note that the cost of the insurance policy will typically be a monthly premium that you will need to pay.

In addition to mortgage disability insurance, it’s also recommended to be proactive in managing your finances and creating a plan to ensure you can pay your bills while you are unable to work. This may involve creating a bare-bones budget and considering other strategies to help ease the financial impact of your disability or illness.

Remember, it’s essential to carefully assess your financial situation and consider consulting with an insurance professional to determine the best option for protecting your housing loan in case of inability to work due to illness.

Beware 1 setback of Mortgage Reducing Term Assurance
Beware 1 setback of Mortgage Reducing Term Assurance


In order to cover illness and build cash value for your housing loan, there are a few insurance options to consider:

  1. Mortgage Protection Insurance: Mortgage protection insurance is designed to provide coverage for your mortgage payments in the event of illness or disability that prevents you from working. It can help ensure that your mortgage payments are covered, and your home is protected.
  2. Life Insurance with Cash Value: Another option is to consider a life insurance policy with a cash value component. Certain types of life insurance, such as whole life or universal life insurance, can build cash value over time. This cash value can be accessed in the future to supplement your income or cover your housing loan payments in case of illness.
  3. Critical Illness Insurance: Critical illness insurance provides a lump sum payment if you are diagnosed with a critical illness covered by the policy. This payment can be used to cover your housing loan payments or any other financial obligations you may have while dealing with the illness.

It is important to carefully review the terms and conditions, coverage limits, and exclusions of any insurance policy before making a decision. Additionally, consulting with a financial advisor or insurance professional can help you determine the best options based on your specific needs and circumstances.

Note: The above information is a general overview and not personalized financial advice. Please consult with a financial professional for advice tailored to your specific situation.

5 Reasons Why You Don’t Want to Buy Life Insurance

5 Reasons Why You Don’t Want to Buy Life Insurance., sadly, just 62% of Malaysians had life insurance in 2021. It implied that 38% of the population is uninsured. Why is this situation so pathetic? Is it the fault of the agent or assured?

Not only no insurance, but also inadequate coverage. The average is RM100,000-RM150,000. Can it feed your loved one for 5 or 10 years if you don’t return? The sum varied depending on whether the spouse or children worked. Nonetheless, the little money insured hardly lasts a year for a single parent with two or three kids in the metropolis.

5 Reasons Why You Don’t Want to Buy Life Insurance

Is it the parent’s duty to look after the children after one dies? The bank auctions the house for six months arrears in repayment without any insurance to cover the loan tenure.
When one parent remarried, the innocent child suffered. Victimized by abusive stepparents? Unreported rape, tortured with several cuts and bruises, and ancient wounds on an emaciated body An nasty mother’s son was saved by the cops. The argument stated confined the youngster like a dog in a little cage. Can your spirit rest if your child is abused?

5 Reasons Why You Don’t Want to Buy Life Insurance


Car loan, parking, gas, and vehicle maintenance all eat into a newlywed couple’s monthly budget. There’s also college loans, rent, utilities, an emergency fund for a child’s doctor, and gifts for elderly parents. It’s a blessing to have a little disposable income left over. Buying life insurance is a “luxury” for people on a restricted budget.
An economical term life insurance policy should cost less than a daily high tea at a local café. Do you prefer expensive life insurance to a bedridden spouse or child at home? Death brings swift solace, but the loved ones’ anguish endures. So why be a careless parent who may later curse those still alive who struggle to meet basic needs?

5 Reasons Why You Don’t Want to Buy Life Insurance


5 Reasons Why You Don't Want to Buy Life Insurance
5 Reasons Why You Don’t Want to Buy Life Insurance

Agents nowadays complain difficulty closing sales with youthful, busy people. The yuppie goes to the gym five days a week after work. Similarly, the diet eats moderately due to health and budget constraints. How true is it? Isn’t it Do you prefer soft drinks to mineral water or fruit juice? The diabetes and hypertensive sufferers slowly knock on their door. The Malaysian population portrayed young people in their 30s, which was unknown a century ago. How many Malaysians have a yearly physical examination? Congratulations on a clean report. Otherwise, you’re an insurable or substandard risk.

Money Printing Machine Cover

Understanding insurance and unpredictable humans behaviors may take years. You have covered their moveable possessions like car, motorcycle, home, camera, and household insurance, but not themselves. Road accidents and armed robberies are rampant, so they pray for nothing. No one can anticipate when you will be sick, bedridden, or in the grips. But there’s no insurance for the equipment that prints your money: your body. Overuse causes machinery to break down, and your body is no exception. As a result, a patient dies on a hospital bed.

5 Reasons Why You Don’t Want to Buy Life Insurance

Negative Views
The two older customers sat between a young man and an insurance representative.
As my neighbor’s son spent a week in a private hospital, his insurer declined his claim.
“Why,” another inquired.

“I don’t know why they rejected me; the agent was first helpful, but then he was unavailable.”
Agent and insurance are legal lesson conman that offer you the sky but provide a barren hope.
Please consult your spouse before buying your investment-linked idea, young man. A senior client consoled the vivacious agent.
“It’s fine to reconsider,” the agent says respectfully.
So one rejected assertion became a wildfire myth.

The reality
Sometimes the half-baked agent will ask the assured to sign without filling out the medical history. They informed him he has hypertension and is on long-term medication. Whose? It’s the Assured, who stupidly signed the dotted line on the proposal form.

Its moral hazard
I did help reclaim a denied case. A hospital record revealed that assured had removed kidney stones in a government hospital, to my dismay. When asked by the agent about previous operations, he said NO. As a result, the insurer refused his kidney dialysis claim.
Another case of hypertension was answered poorly despite regular oral treatment. Insurers frequently deny claims for later-stage stroke or kidney failure.

5 Reasons Why You Don't Want to Buy Life Insurance
5 Reasons Why You Don’t Want to Buy Life Insurance

utmost good faith
The insurance legislation governs four principles, including utmost good faith. When entering into an insurance contract, the assured must disclose all material facts to the prudent underwriter before accepting or rejecting the offer. Whether the assured knows or not, inform the insurer. So, true advise bears all facts to the insurer to avoid future claim issues.

5 Reasons Why You Don’t Want to Buy Life Insurance

I am Single
Most y generation don’t care—chase after the latest trendy iPhone device every six months. Also, holiday priority, credit card payment afterwards. Life insurance? Why? I am independent. Hasty response? Single, no ties, no family obligations, no parent, no sibling, living in own world, why care? Then why not let the government handle the burial or leave the body on the road or hospital to rot?

Maybe a Tibetan “sky burial” with an eagle will do.
Your grey-haired retired government servant parent doesn’t get a double whammy. Who should pay for a burial place when you lose one child? Unfortunately, you’ve established entire permanent impairment; hiring a nurse or long-term nursing isn’t a hassle. If you are in a nursing home, who pays for your care?

No Cash
Nobody wants to wait for the newbie’s counsel. Eliminating intermediaries for singles or young married couples is common. Or postponed, they may procrastinate for years. Silent sickness has no red alarms on the body. If you have a car accident, you want to be fully covered. Do you believe the insurance company will accept your offer? You flatly decline. But, in reality, most insureds have this bizarre notion. During my 28 years in the insurance field, I’ve seen similar situations. Is the insurer heartless?

5 Reasons Why You Don’t Want to Buy Life Insurance

Tight Budget, put off
We aged with time and the daily ingestion of highly toxic junk food. I met an elementary school student who had dialysis at the public hospital. Today’s civilization is characteristic of a stressed lifestyle chasing monetary rewards. The insurance premium increases with age. If we compare a 20 year old to a 30 year old, the premiums are greater and the sum covered is smaller. Aging immune systems make us susceptible to sickness. It even applies to a ten year gap band.

5 Reasons Why You Don't Want to Buy Life Insurance
5 Reasons Why You Don’t Want to Buy Life Insurance

In short, acquire insurance when you are young and healthy to save money on premiums and increase your coverage.

Sentence length jargon

How many lawyers and layman can read, understand, and interpret the insurance policy? As a result, no one is an all-rounder. Consult your agent or even the insurer for a comprehensive explanation. Examine the next point carefully; you will need to handle a claim soon.


The insurer would refuse liable if all sickness or circumstances defied the policy in this column. For example, commit suicide within a certain time frame or claim a pee-existing sickness. Please acknowledge receipt of the policy by highlighting to the assured. It is better to avoid short-term discomfort than to blame the consultant’s recklessness.

Start Date

The policy was enforced with the written date and the policy’s expiration date. In medical or 36 severe feared illness claims, the start date is crucial. Never miss it. Sometimes, assured would go to the hospital and bravely ignore the waiting period. The assured would then propagate rumors that the insurer is selling a fraud policy, even if the default is with the assured. Defame the agent, and damage your name.

The plan

In this schedule, your name and ID number should be spelled as on your ID. If you find a mistake, fix it right away. So the insurance can deny your future claims. Don’t risk the underwriter’s reaction to your consumer claim.

Indicate whether the insurance is whole life, endowment, term, or investment linked. Premium waiver due to dreaded sickness or the payer. Any day hospitalization, woman disease, and pregnant admission mentioned in your signed proposal form. Scan any deviations, notify the agent in writing, and verify the insurance approves the change. Finally, I noted the insured sum on the schedule.

Declared the policy number for future correspondence with insurance claims or endorsements. How much is the premium? Assured must warn adjusted premium during the life of the cover, not to mention the medical card renewal clearly indicated.

Invest in assurance.

Spend money on a romantic candlelight dinner, a lavish family vacation, or the latest gadget every six months. How about having a policy coverage that ensures all financial restrictions are not occurring in the continued household when you forget your way home one day?

Positively, Malaysia’s new business total premiums grew by 12.4% in 2021 compared to 2020, a double-digit increase.

Your Views
As always, please leave any ideas or questions in the comments area below.