Last week received a call, this man, let's call him Mr. M, asking question about MLTA.
Mr. M just signed a letter offer from a bank for over RM600k and keen to buy mortgage insurance. He said he received some quotation and done his research online over the insurer's website.
Mr. M question to me is, "Why I can't find a product name MLTA?"
To answer Mr. M.....I said: "MLTA is not a product but a concept coined by insurance agency to sell life insurance."
"MRTA (Mortgage Reducing Term Assurance) is also a form of life insurance", I told Mr. M, "but sold by bank to borrower to protect the bank's interest first."
Both MRTA and MLTA has its pros and cons. I believe MLTA is gaining more market shares because it gives consumer more flexibility. People likes to be in control...