Klang-Valley.com :Who can pay your outstanding mortgage loan if you become totally disable or death?

Klang-Valley.com :Who can pay your outstanding mortgage loan if you become totally disable or death? from Klang-Valley.com

By: Klang-Valley.com  26-06-2009
Keywords: Insurance, Financial Services, Life Insurance

No one for sure know what will happen in life. Accident or death can happen anytime. If you become total permanent disablement (TPD) or death, can your family pay the outstanding loan amount for the property? If not, you or your family would have to sell off the property when your savings run out. Worst, if you cannot find a buyer on time, the bank will auction off your property. How to avoid this problem?

I have 2 products to offer here:

(a) MRTA (Mortgage Reducing Term Assurance)
- this is the cheapest product, and you pay a one off payment insurance coverage 
- every year, your outstanding loan amount decrease, and so is the coverage value
- if you get TPD or death, the insurace company will pay off your outstanding loan amount, no extra.

(b) MLTA (Mortgage Level  Term Assurance)
- suitable for a borrower who is looking for a life insurance which offers protection plus returns on the premium  
- need to pay premium monthly or annually
- after certain years, you'll get back the total amount of premium paid (guaranteed), no loss.
- if you get TPD or death, the insurace company will pay off your outstanding loan amount + surplus as shown in the diagram above.

Keywords: Financial Adviser, financial consultant, Financial Services, Insurance, Life Insurance, Loan, mlta, mortgage