Mortgage Reducing Term Assurance (MRTA) is also frequently referred to Mortgage Life Insurance. MRTA helps you settle your housing loan in the event something happens to you.

Although many people don't like talking about it, disability, illness or death can occur any time. MRTA will cover the unpaid portion of your loan if this happens. It gives you peace of mind and protects your family from losing a home. It provides coverage even during the construction period. The premium is reasonable, and it can even be financed by your bank.

What are the benefits?

-> Lump sum repayment to your mortgage loan in case of death or total and permanent disability due to natural causes, illness or accidents.

-> Coverage is 24 hours, worldwide.

-> Premiums can be financed by the bank.

-> Discount on the premium for joint life application if your home is jointly owned by your spouse or immediate next of kin.

What does MRTA cover?

It covers disability, illness or death and also total and permanent disability. However, there are exclusions such as:

-> Death due to suicide and AIDS/HIV

-> Total or permanent disability due to self-inflicted injuries, armed forces, riot and civil commotion, flying other than as a fare-paying passenger, racing on a horse or wheels

-> Pre-existing conditions such as AIDS/HIV

How much would my premium be?

Premium factors depend on the sum assured, interest rate, term, construction period, premium financing, joint-life, age at next birthday.

If you are between 18 and 60 years of age and in good health, you are eligible to take up MRTA. You can always make an application by filling up an application form at the Bank.


Source: http://www.memylife.com/MyHome/mh_ArticleLevel.asp?Category=15&Article=61&Name=Home%20Insurance