Buying a home is one of the biggest financial decisions you’ll make. Alongside choosing the right mortgage, protecting your investment is equally important. That’s where MRTA (Mortgage Reducing Term Assurance) and MLTA (Mortgage Level Term Assurance) come in—two common insurance options for home loan borrowers in Malaysia.
But which one is right for you? Understanding how each works can save you money and offer the right kind of protection for your needs. This article that will break down the basics and help you make an informed decision.
Find Out More: What Is MRTA?
MRTA is a life insurance policy specifically designed to settle your home loan if something unfortunate happens to you during the loan term. The sum insured reduces over time in line with your outstanding mortgage.
Key features of MRTA:
- Lump-sum, one-time premium (often included in your loan)
- Coverage reduces over the loan period
- Typically non-transferable between loans or properties
- Cheaper upfront but less flexible
MRTA is often suitable for first-time homeowners looking for basic, cost-effective protection tied directly to their mortgage.
What Is MLTA?
MLTA offers broader and more flexible coverage. Unlike MRTA, the sum assured under MLTA remains fixed throughout the policy term. It can also include additional benefits like cash value, critical illness coverage, and portability.
Key features of MLTA:
- Level sum assured that doesn’t reduce over time
- Separate from the mortgage, so it can be retained if you refinance
- Premiums paid regularly (monthly or annually)
- Offers additional protection for your family
MLTA is ideal for homeowners who want more comprehensive life coverage and long-term financial security.
Find Out Which One You Should Choose
MRTA vs MLTA—what’s best for you depends on your financial goals, age, and risk appetite. Here’s a quick comparison:
| Feature | MRTA | MLTA |
| Coverage Amount | Reducing | Fixed |
| Premium Payment | One-time (usually financed) | Regular (monthly/annually) |
| Flexibility | Limited | High (can continue after refinancing) |
| Additional Benefits | Usually none | May include riders & savings |
Younger borrowers or those on a tight budget may prefer MRTA for its affordability, while MLTA suits those seeking wider protection and family benefit.
If you’d like a more detailed breakdown of each policy type, you can find out more from AmMetLife’s expert guide.
Final Thoughts: Choose Protection That Matches Your Future
Choosing between MRTA and MLTA shouldn’t be rushed. Think about your long-term needs, not just your loan obligations. Protecting your home means protecting your family’s financial future, and both plans offer different paths to peace of mind.For expert insights and to understand what suits you best, find out more with AmMetLife’s full comparison guide.