What is MRTA?
MRTA stands for (Mortgage Reducing Term Assurance).
It is a type of life insurance that is specifically created for home loan borrowers.
MRTA stands for (Mortgage Reducing Term Assurance).
It is a type of life insurance that is specifically created for home loan borrowers.
1/ It's not mandatory ❌
The Reserve Bank of India (RBI) has put no compulsion on people to purchase property insurance for home loans.
The Reserve Bank of India (RBI) has put no compulsion on people to purchase property insurance for home loans.
2/ It's expensive ❌
The premiums for MRTA can be quite high, especially if you're a new and healthy borrower.
The premiums for MRTA can be quite high, especially if you're a new and healthy borrower.
3/ It's not always comprehensive ❌
MRTA only covers death and total permanent disability (TPD). It doesn't cover other events, such as critical illness or unemployment.
So, What's the point !!
MRTA only covers death and total permanent disability (TPD). It doesn't cover other events, such as critical illness or unemployment.
So, What's the point !!
4/ It can be difficult to claim ❌
If you do need to make a claim on your MRTA policy, the process can be complex and time-consuming.
If you do need to make a claim on your MRTA policy, the process can be complex and time-consuming.
For Exp :
For example, if you take a home loan of ₹20 lakhs at an interest rate of 8% for a term of 20 years,
Your monthly EMI will be ₹15,600.
If you take MRTA, your monthly EMI will be ₹15,840.
For example, if you take a home loan of ₹20 lakhs at an interest rate of 8% for a term of 20 years,
Your monthly EMI will be ₹15,600.
If you take MRTA, your monthly EMI will be ₹15,840.
This means that you will save ₹240 per month by not taking MRTA.
I know it's not a big deal, but it's of no use.
I know it's not a big deal, but it's of no use.
Best Alternative Option you can choose :
✅ Term life insurance.
✅ Whole life insurance.
✅ Critical illness insurance.
✅ Unemployment insurance.
✅ Term life insurance.
✅ Whole life insurance.
✅ Critical illness insurance.
✅ Unemployment insurance.
Note: Pls, Do your own research before investing in any insurance policy.
Hope you get my point !!
If you have any doubt, Let me know in the comments !!
Hope you get my point !!
If you have any doubt, Let me know in the comments !!
That's all 📌
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If you find it Insightful,
Do Like + RWT 💖
Do Follow me for more Such Content
on Finance & Investing
#loan #bank #insurance #lic #moneyhack #moneysaving
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