Buying a home is a big commitment, possibly the biggest purchase you’ve made so far. It’s also a long term investment which can take up to 35 years to fully repay. Hence, it should be protected even when you are no longer around.

Providing a home for your future generation is always a positive. However, in any event of death or total permanent disability, a home loan that has not been settled in full can turn into a burden for your loved ones.

Due to these circumstances, there are insurance policies for home buyers to choose from. In an unfortunate life event, these policies free the borrower’s dependents from any debt as it is designed to pay off the balance debt on the mortgages.

MRTA Vs MLTA

There are 2 kinds of mortgage life insurance available;
1. Mortgage Reducing Term Assurance (MRTA)

a. A life insurance plan with decreasing sum assured over time, and it is used just to cover your home loan. This plan is usually offered by the bank as it is used as protection for the bank in case of any misfortune that hinders you from servicing the loan.

2. Mortgage Level Term Assurance (MLTA)

a. An insurance plan that offers and alternative for the borrower who is looking for a life insurance which offers protection plus savings and in some policies, returns on the premium. This is a personal plan, where you and your dependents are financially protected.



If you have adequate standalone life and medical insurance, MRTA might be the policy for you. However, as this insurance only takes care of your loan, in the event of TPD or death, your family will not get a single cent from the policy. The beneficiary is the bank.

MLTA is for those who need an extra financial protection plan for worst case scenarios, as it has a cash value at the end of the policy. For a person with a family, financial dependents, this would be the best policy for you.


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