Tuesday, August 13, 2013

Why do you need Mortgage Reducing Term Assurance (MRTA)?

What is MRTA?

MRTA is an insurance policy that settles outstanding home loan amounts in the event of death or total disablement of the borrower due to natural causes, illness or accidents. Exclusions include death due to suicide and AIDS/HIV.
Why do you need it?
Generally, in the event of untimely death or disability of a home loan borrower, the greatest problem facing surviving households is their ability to pay off the remaining home loan.
In many instances, the surviving family members may even need to sell off the property at a less-than-competitive price just to pay off the outstanding amount.
By signing up for an MRTA, the MRTA will pay off part or all of the unpaid portion of a home loan, so that the surviving family members don’t have to sell off the property.