What happens to your car when u.....

[astroboy]

MRTA (Mortgage Reducing Term Assurance), if your look at the risk reward rate, its ridiculously unattractive compare to a conventional life insurance. I suggest you increase your life policy coverages.. but MRTA is tax deductible when you are being slapped with RPGT (Real Property Gain Tax), which has been abolished thus far.

Furthermore MRTA itself is a rip off when you dispose off your property before the loan term mature, or early settle your housing loan as its totally inflexible for the insured to transfer the MRTA to a new property with outstanding loan or even to switch beneficiary from the bank to the house owner's next-of-kin after early settling the loan. Early surrendering or canceling the MRTA is the only option when one early settle the loan and the refund is of miserable proportion.

 

[tongsatriani]

Hi All,

Just to enlighten on estate distribution.

When someone is deceased, everything under his/hers name will be an "estate".

This estate is subject to a total debt clearance (eg. credit card, housing loan, business loan etc) then only the balance will be given back to next of kin/s.

If all next of kins got no objection to the way of distribution (remember, there is a Distibution Act in Malaysia), all is well.

If any 1 of them objects, then it'll be a civil case. So, writing a will & engaging a trusty is the ONLY way to avoid disputes.

House has it's own MRTA but not car or other liabilties. So, how?

Simple, just get a life/term insurance policy/s that is commensurate to your current net worth/liabilities (eg. car loan RM300,000, get a 5 year term plan valued at the same amount).

Hope this helps.

 

[zeedo]

Ambank has this insurance to cover the outstanding balance in case the owner passed away, remember one of the Nuri pilot who crashed near Bukit Tinggi 2 years ago....he was covered so the car transferred to the next of kin w/o settling the loan balance. I bought both my cars using Ambank and it is highly recommended to take this extra coverage. Anything happened wife got 2 cars fully paid

 

[Spaceman]

Ambank has this insurance to cover the outstanding balance in case the owner passed away, remember one of the Nuri pilot who crashed near Bukit Tinggi 2 years ago....he was covered so the car transferred to the next of kin w/o settling the loan balance. I bought both my cars using Ambank and it is highly recommended to take this extra coverage. Anything happened wife got 2 cars fully paid

Ambank offers such protection plans? Is this a separate insurance or just from the motor insurance itself?

 

[initialM]

Ambank has this insurance to cover the outstanding balance in case the owner passed away, remember one of the Nuri pilot who crashed near Bukit Tinggi 2 years ago....he was covered so the car transferred to the next of kin w/o settling the loan balance. I bought both my cars using Ambank and it is highly recommended to take this extra coverage. Anything happened wife got 2 cars fully paid

Yup my car loan wt Ambank also cover death of hirer. :top: