RIZKEE JOHARI ACADEMY

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Here I want to give some information about MRTA/MRTT vs MLTA/MLTT.

Conventional Loans

MRTA – Mortgage Reduced Term Assurance

MLTA – Mortgage Level Term Assurance

Islamic Loans

MRTT – Mortgage Reduced Term Takaful

MLTT – Mortgage Level Term Takaful

MRTA/MRTT

1. Provides protection for debt and it will decrease from year to year according to the debt balance. It provides a guarantee to the bank if something happens to the borrower. (In other words, this insurance covers the bank)
2. If the borrower dies or becomes permanently disabled (TPD), the insurance will pay to the bank and the borrower or heirs will get the house.
3. If the borrower sells the house and buys another house, this insurance will expire and must be repaid for a new loan. It will also expire after the bank loan is completed.
4. After the loan is completed, there is no cash value for MRTA while for MRTT it is usually paid according to the mudharabah concept.

MLTA/MLTT

1. Provides protection to the borrower and its value does not decrease. It provides a guarantee to the borrower or heirs if something happens to the borrower. (In other words, this insurance covers the contributor).
2. If the borrower dies or becomes permanently disabled (TPD), the insurance will pay to the bank and the balance will be handed over to the contributor or heirs. Therefore, the contributor or heirs will get a house and also money.
3. If the borrower sells the house and buys another house, this insurance can be transferred to a new asset and continue contributing as usual.

ISLAMIC LOANS

PRICE / PREMIUM

MRTT – Low if calculated from the point of view of the total contribution. But remember that the payment is a lump sum. Most borrowers will include MRTT payments in the loan and all are subject to interest.

MLTT – High but instalment contributions

PAYMENT METHOD

MRTT – All at once

MLTT – Monthly, quarterly, semi-annually, or annually

BANK FINANCING

MRTT – Can be included in a bank loan if you want to make monthly payments but will be charged interest. Therefore, the total contribution after + wages will be high.

MLTT – Not relevant

POLICY PURPOSE

MRTT – Guarantee to the bank.

MLTT – Death/Permanent Disability/Critical Illness and Cash Value Protection

PROPERTY/ASSETS TRANSFER

MRTT – Non-transferable or transferable assets (1 certificate only covers 1 housing loan at a time)

MLTT – Transferable or transferable assets (1 certificate can cover several housing loans at a time)

COVERAGE

MRTT – Based on the loan amount and will be cancelled when the debt is repaid or refinanced.

MLTT – Based on the total contribution, no depreciation throughout the policy period

NOMINEE

MRTT – Bank only

MLTT – Contributor or heir (100% GRANT, COMPENSATION DOES NOT NEED FARAID UNDER IFSA ACT 2013)

CLAIM

MRTT – Insurance clears the remaining debt, the owner or heir receives the house. Usually the profit is given based on the mudharabah concept, but MRTA does not have this privilege.

MLTT – Takaful provides compensation to settle the remaining loan balance and the remaining compensation money belongs to the nominee in full without the need for Faraid for the compensation.

credit to: http://hartanahpremium.com

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MLTT IS NOT JUST PROTECTING HOME LOANS, IT IS MORE THAN THAT!
TRY LOOKING AT THE PICTURE BELOW, DO YOU UNDERSTAND?

NAK TAU LEBIH BOLEH CONTACT RIZKEE JUGA:

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