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MRTA Insurance for Home Financing

I got this quotation from an insurance agent. Assuming this is for an under construction property. The quotation doesn’t show the MRTA calculation. Most importantly, the total amount of money to be paid upon your death (sum assured) and surrender value is all listed down for each particular year. Hence, you know how much it covers for your home financing.

Initial Sum Assured (RM) : 250,000.00
Assumed Loan Interest Rate(i) % : less than or equal to 7%
Term of Coverage : 10 years
Deferment Period : 3 years

Insurance Coverage Details

Estimated Premium Amount(RM)
Insurance Single Premium for life to be assuredRM 1,916.00
Insurance Single Premium for joint life to be assuredRM 2,675.00
Total Premium payableRM 4,591.00

(A discount of 20% will be applied on the single premium for the younger of two lives to be assured)

Illustration of Estimated PRU Group Mortgage Benefits

YearSum Assured*Surrender Value**Surrender Value**
(Joint-life)
Total Surrender Value
1250,000.001,437.002,006.253,443.25
2250,000.001,274.001,812.923,087.62
3250,000.001,112.241,618.002,730.24
4250,000.00948.621,419.682,012.33
5233,500.00790.391,221.941,677.40
6214,250.00645.231,032.171,361.85
7193,750.00513.90847.951,361.85
8171,750.00396.38670.521,066.90
9148,000.00291.66503.03794.69
10122,750.00199.66348.39548.05
1195,750.00121.02213.13334.15
1267,000.0058.54104.09162.63
1336,000.0016.5129.5946.10

Remark:
* = Sum Assured at the beginning of year upon Death or TPD claim.
** = Total Estimated Surrender Value at the beginning of year. The estimated surrender values are calculated based on the actual premium paid.

4 thoughts on “MRTA Insurance for Home Financing”

  1. Knowthymoney
     · 

    You plan to insure yourself for 10 years only?

    • Horlic Lim
       · 

      Not mine, just try to get some sample of MRTA quotation to share here…

  2. SM
     · 

    Deferment is due to what?

    Can we request for example 8 yrs deferment?

    • Horlic Lim
       · 

      According to the agent, the property is still under construction for the first 3 years, that’s why deferment 3 years. 8 years deferment? I don’t think so.