MRTA Insurance for Home Financing

 got this quotation from an insurance agent. Assuming this is for an under construction property. The quotation doesn’t show the MRTA calculation. Most importantly, the total amount of money to be paid upon your death (sum assured) and surrender value is all listed down for each particular year. Hence, you know how much it covers for your home financing.

Initial Sum Assured (RM) : 250,000.00
Assumed Loan Interest Rate(i) % : less than or equal to 7%
Term of Coverage : 10 years
Deferment Period : 3 years

Insurance Coverage Details

Estimated Premium Amount	(RM)
Insurance Single Premium for life to be assured	RM 1,916.00
Insurance Single Premium for joint life to be assured	RM 2,675.00
Total Premium payable	RM 4,591.00

(A discount of 20% will be applied on the single premium for the younger of two lives to be assured)

Illustration of Estimated PRU Group Mortgage Benefits

Year	Sum Assured*	Surrender Value**	Surrender Value**  (Joint-life)	Total Surrender Value
1	250,000.00	1,437.00	2,006.25	3,443.25
2	250,000.00	1,274.00	1,812.92	3,087.62
3	250,000.00	1,112.24	1,618.00	2,730.24
4	250,000.00	948.62	1,419.68	2,012.33
5	233,500.00	790.39	1,221.94	1,677.40
6	214,250.00	645.23	1,032.17	1,361.85
7	193,750.00	513.90	847.95	1,361.85
8	171,750.00	396.38	670.52	1,066.90
9	148,000.00	291.66	503.03	794.69
10	122,750.00	199.66	348.39	548.05
11	95,750.00	121.02	213.13	334.15
12	67,000.00	58.54	104.09	162.63
13	36,000.00	16.51	29.59	46.10

Remark:
* = Sum Assured at the beginning of year upon Death or TPD claim.
** = Total Estimated Surrender Value at the beginning of year. The estimated surrender values are calculated based on the actual premium paid.