Key takeaways
- MRTA cover reduces roughly in line with your outstanding loan; MLTA cover stays level for the whole term.
- On a RM500,000 loan over 35 years at 4%, the instalment is about RM2,214 a month and about RM419,000 is still owed after 10 years.
- Choose cover at least equal to the loan, for at least the loan tenure.
- If you may refinance or sell, MLTA usually follows you to the next loan; MRTA is usually tied to the original loan.
- Actual MRTA schedules use the insurer’s own assumed rate, so treat the calculator as a guide.
How to read the result
- Loan owed: what you would still owe the bank at that point. MRTA is designed to pay roughly this amount, so its cover falls as you pay down the loan.
- MLTA cover: stays at the amount you chose. If something happens late in the loan, the payout above the loan can go to your family, subject to the plan’s terms.
- Monthly instalment: principal and interest only; it does not include insurance premiums.
Compare the two side by side, including refinancing and selling, in our MRTA vs MLTA guide.
Choosing the sum assured and term
| Decision | Rule of thumb |
|---|---|
| Sum assured | At least the loan amount; with MLTA some families add a little extra for living costs |
| Term | At least the loan tenure |
| Joint loan | Check whether each borrower is covered, and for how much |
| Existing life cover | Count it before buying more |
| Single or regular premium | A single premium financed into the loan adds interest; regular premiums keep the loan smaller |