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Mortgage Reducing Term Assurance (MRTA) is a scheme where you are covered for the amount of the loan for the period of the loan. Mortgage Reducing Term Assurance Premium is one lump sum and very often the lending institution will arrange fire and Mortgage Reducing Term Assurance of insurance cover.

If you pass away during the period of the loan, the Insurance Company which issued the policy will pay the outstanding balance of the repayment to the bank/finance institution that granted the housing loan.


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