MRTA or MLTA (Mortgage Assurance) is the mortgage insurance to secure a property for any unforeseen circumstances happen to the home buyer. Buying a home is a huge commitment and will take the average homeowner up to 35 years to fully repay. Mortgage Assurance is very important as if the home loan is not settled in full, it can turn into a burden for your loved ones in the event of death or total permanent disability (TPD).
- Mortgage Reducing Term Loan
Mortgage Reducing Term Assurance (MRTA) – life insurance plan with decreasing sum assured over time, and it used just to cover your home loan owed to bank. This plan is usually offered by the bank you are getting the mortgage from, as it is used as protection for the bank in case of misfortunes that stop you from servicing the loan.
2. Mortgage Long Term Assurance (MLTA)
Mortgage Level Term Assurance (MLTA) – alternative for a borrower who is looking for a life insurance which offers protection plus savings and in some policies returns on the premium. This is a personal plan, where you and your dependents are financially protected when you are no longer around, or have lost the ability to generate income.