Is your home is fully
protected?
Buying a dream house is the biggest financial commitment, as
there are many things to consider – downpayment, margin of financing, rates,
tenure, instalments, mortgage and etc.
Owning a dream home is most likely being the most important
and biggest investment in your life. That is where your extra efforts in
thoughts come in; identifying the preferred location, viewing the design of the
dream house and ultimately purchasing it. Concurrently, you will also need to
shop around on the available financing for your dream house that fits your
financial ability and compare the features of the similar products offered in
the market. Not to forget, you need to pay extra-attention to the fees and
charges imposed before making your final decision.
Whether you’re buying your first home or not, unexpected
events may lead to a loss of income or a decreased ability to fulfill your
financing obligations. That is where a good protection plan will be able to
help you in ensuring your financing is paid off and your family won’t have the
responsibility to bear your financial obligations.
Takaful plan or insurance plan is crucial to protect your
home, whether it’s MRTT / MRTA, takaful keluarga plan / life policy, or even
householder or Houseowner plan.
However, do you really have the idea of of how do we protect
our biggest investment in life? It means, protecting your financial against any
calamities might comes to you, while you still have your financing with the
banks.
Property Financing or
Housing Loan Protection Plan
When you have enter into the agreement with the bank
pertaining to your house financing, there are options of how you can find a
financial backup plan to protect your dream house.
1. Mortgage Reducing Term Takaful (MRTT)
A term takaful plan is designed with the sole purpose of providing
financial backup against death or total permanent disability against the buyer.
It is offered by the bank to fully settle the outstanding balance in the event
of the buyer/borrower dies or strike with the disability. Failing to service
the financing, it will end up of loosing the dream house.
On normal occasion, the bank will encourage the buyer to take-up this
plan to protect the bank’s interest in the property during the financing
tenure. It does not provide any savings or any payout after it matures. In
other words, this plan is solely to serve the property financing.
The total sum covered (total sum insured) is reduce progressively in
accordance with the reduction in the total financing over the tenure. Total sum
contribution (total premium) is calculated based on the age of the person
covered (or the buyer) and the total sum covered (or total financing). The
final amount, i.e total sum contribution will be adding to your total financing
before arrive of calculating the monthly installment that you have to service
over the tenure.
This product offers a one lump payment. That is why some buyers may opt
with this option as it a hassle free procedures. Buyers may be able to continue
life without having to worry about the financial burden that may comes in the
future. Some other buyers would prefer other available options like Mortgage
Level Term Takaful to protect the property financing.
2. Mortgage Level Term Takaful (MLTT)
Most banks accept normal takaful keluarga plan (or life insurance plan),
provided the total sum coverage is adequate enough to cover the total property
financing.
Using this plan againt the financing, offers a more flexibility in terms
of payment, as you have options either to pay on monthly, quarterly,
half-yearly or on annual basis. Moreover,
the total sum coverage is never reduce unlike MRTT, but stays the same
throughout the tenure. You can either choose an endowment plan or term plan,
depending on your financial needs and objective. For endowment plan, the best
thing about choosing it as it also provide savings and even returns upon
maturity.
Some
banks do require this policy as a collateral to protect your financing with the
bank. Arrangement need to be done by way of giving the bank an absolute right
to pay off your financing before the proceeds went to your beneficiaries.
Your MRTT or MLTT plan will only cover the outstanding total financing with the
bank. But what will happen to your dream house building when is it burnt down
by fire or is damaged by flood or is crushed by the landslide? As a homeowner,
you are still liable to serve your installment, and at the same time you will
need to incur the necessary expenses to re-build or repairs your home.
Is there any other plan that can serve this purpose?
Differences MRTT vs MLTT
Mortgage Reducing Term Takaful (MRTT)
|
Mortgage Level Term Takaful (MLTT)
|
Coverage reduces
|
Coverage never reduces
|
No savings at maturity
|
Savings in return (increase throughout
the year)
|
Proceeds go directly to the bank
|
Proceeds go to the beneficiaries
(family)
|
Non-transferable
|
Policy is transferable to other
financing / loans
|
Single payment (one lump sum)
|
Various payment frequency (monthly,
quarterly, half-yearly or annual basis)
|
Bank make profit (if MRTT attached to
the financing)
|
You will enjoy the dividend yearly
|
Cash or top-up to your total financing
only
|
Various methods of payment allowed
(credit card, cash, cheque, SI, autodebit)
|
Contact us at info.teguhbistariservies@gmail.com or 017-2379676 for more information.
