What is MRTA?
MRTA (Mortgage Reducing Term Assurance) is life cover tied to a loan, mostly a home loan. If the borrower dies or becomes totally and permanently disabled while paying it off, the insurer pays the lender first to clear what is left, so the family keeps the home and not the debt.
How MRTA works
1. Pay once
One premium at the start; many banks let you add it to the loan.
2. Cover follows the debt
Cover starts at the loan amount and steps down each year on the plan's schedule, close to what you still owe.
3. Debt cleared if the worst happens
On death or total permanent disability the lender is paid first; anything above the debt goes to your next beneficiary.
MRTA vs MLTA
| MRTA | MLTA | |
|---|---|---|
| Sum insured | Goes down with the loan | Level for the whole term |
| Premium | Once | Yearly |
| Cost | Lower | Higher |
| Cash value | Some plans have a surrender value | Usually yes |
| New loan / refinance | Tied to the original loan | Usually goes with you |
How much does MRTA cost?
Example one-time premium, starting cover ฿1,000,000, 20-year loan — Muang Thai Life's own rates (MRTA for the public)
| Age | Male (THB) | Female (THB) |
|---|---|---|
| 25 | 28,950 | 10,140 |
| 30 | 35,990 | 13,240 |
| 35 | 47,840 | 18,760 |
| 40 | 66,000 | 28,060 |
Pros and things to know
✓ Pros
- Your family doesn't inherit the loan
- Cheaper than level cover
- Paid once, nothing to renew
- Some banks lower the rate with it
⚠ Things to know
- Cover shrinks every year — it is not a lump sum for your family
- Tied to this loan — a refinance may need a new policy
- Not compulsory — you can pick the insurer; weigh the rate discount against the premium
- High cover may need a medical
How to choose MRTA
- 1. Cover = the loan — with co-borrowers the cover may be split between them
- 2. Term = the loan years — some plans cover fewer years than the loan: cheaper, but the last years are bare
- 3. Compare insurers — prices can differ by tens of thousands of baht for the same loan
- 4. Check the surrender value — matters if you may repay early or refinance
FAQ
What is MRTA?
MRTA (Mortgage Reducing Term Assurance) is loan-protection life cover whose sum insured goes down with the loan. If the borrower dies or becomes totally and permanently disabled, the insurer pays the lender to clear what is left.
Do I have to buy MRTA with a home loan?
It is not compulsory: the borrower can choose whether to buy it and from which insurer. Some banks give a better rate with it, so weigh the rate discount against the premium.
MRTA vs MLTA?
MRTA cover goes down with the loan and is paid once, so it costs less. MLTA keeps a level cover, is paid yearly, usually builds cash value and can follow you to a new loan.
If I repay early, do I get money back?
Many plans have a surrender value you can claim when the loan is paid off early; the amount depends on the plan and the year. Check each insurer's document.