You have probably came across similar comparison between MRTA vs MLTA from the internet, just like the table below.
But how accurate & practical is this information in the real word? What is MRTA and MLTA?
In many cases, MRTA or MLTA only covers Life or Total Permanent Disability (TPD)…
Well, let us not validate the accuracy of the information above, because the abbreviation of MLTA supposed to represent Mortgage Level Term Assurance, but most of the so called MLTA products recommended by the intermediaries are actually Whole Life Insurance. In fact, there are just a few banks in Malaysia which offer MLTA products.
But have you ever wondered under what circumstances a person will experience TPD or even passed away prematurely? In various cases, it was either due to sickness or major accident.
Hence, if there is any agent or banker who limits their offerings to only MRTA or MLTA, he is not helping to solve your problem in a holistic approach. This could lead you to financial difficulties during any unfortunate circumstances, eg: sickness or accident.
In other words, whether if you are servicing or not servicing a loan, you should first calculate the total cash you or your family needs upon uncertainties, to pay for the:
1) Loan(s)
2) Living Expenses for yourself and dependants
3) Children Education fee
4) Final expenses (funeral, tax, etc)
5) Etc
In fact, your needs for insurance will change accordingly to different stages in life, whether you buy a property, promoted/demoted, change of financial circumstances, newly married, give birth or pre-retire or even during retirement.
At any given point of time, perhaps the best way is to consult a certified financial adviser (FA) to review and revise your protection plan accordingly. The role of a FA will be able to save more of your time and money as they have the access to multiple insurers. With their expertise, they will be able to recommend investments or insurance to match your goal better than typical agents who only promotes his represented insurer/fund house
