Uncertainty is another name of life. While one moment an individual may be on their way to realize their dreams, they never know what the very next moment might bring. The unfortunate strikes at the most unexpected times and can leave your loved ones feeling helpless. It is keeping such situations in mind that one fully understands the significance of future financial planning, and that it doesn’t only include protecting your loved ones against physical risks but also financial ones like debts and outstanding loans.
The AIA Mortgage Term Reducing Assurance (MRTA) is a mortgage insurance plan which guarantees the repayment of any outstanding home loan amount, in the unfortunate event of death, terminal illness or disability.
About AIA Group Limited
Founded way back in 1919, AIA (also known as the AIA Group Limited) is one of the prominent life insurance and financial service providers in the Asia-Pacific region. Headquartered in Hong Kong, AIA operates in the pan-Asian region through a network of wholly owned branches and subsidiaries which are located in countries like Malaysia, Australia, Philippines, Thailand, New Zealand, Singapore, among many others. The AIA Group Limited offers a suite of financial products and services which include life insurance, pension services, employee benefit, accident insurance and health insurance.
Key Benefits of AIA Mortgage Reducing Term Assurance (MRTA)
AIA Mortgage Reducing Term Assurance (MRTA) is the mortgage insurance plan offered by AIA which takes care of any outstanding home loan repayment in the event of death, terminal illness or total & permanent disability. In addition to that, this mortgage insurance plan carries multiple benefits which can help ease the financial burden of your loved ones.
- This plan ensures your peace of mind as it ensures that your family or loved ones don’t have to bear the burden of any outstanding home loan repayment in case of death, terminal illness or total & permanent disablement.
- The AIA MRTA gives you the flexibility to choose when to make your premium payment, which can be done monthly, quarterly, bi-yearly or yearly.
- Another unique benefit accompanying this plan is that it lets you enjoy the benefit of maximum coverage with a shorter premium payment period. Enjoy coverage for your entire home loan period but pay the premium only for 75% of the duration of the home loan term. For example, A has taken a home loan for a term of 30 years. With the MRTA plan, A needs to pay the plan premium only for a period of 22 years and the remaining 8 years, he will be given coverage free of cost.
- The AIA MRTA is a plan which changes with your needs. Say, you decide to sell the property or you have fully paid off your loan. In that case, your remaining AIA MRTA coverage can be used to as coverage for a new mortgage loan.
- AIA believes that even small things matter. This is why, in case you do require a medical examination in order to apply for the plan, and the expenses of your medical examination will be paid by the AIA.
- No matter where you are, the AIA MRTA plan covers you not only worldwide but also up to the age of 75 years.
AIA Insurance Premiums
The mortgage term insurance premium offers a flexible mode of payment. The payment can be made on a monthly, quarterly, half-annual, or annual basis. The following factors are considered for mortgage term insurance:
- Your age
- Loan tenure and amount
- Property value and its age
- Type of property (e.g. a HDB flat or private property)
The premium amount for your AIA mortgage term insurance is calculated using the above factors. The annual premium and the cover will vary from one policy to another depending on the plan or policy you purchase. For detailed information on the terms and conditions, you will need to visit the AIA Singapore website.
AIA Mortgage Insurance Policy Exclusions
Any intentional act that involves the damage to your house or premises will not be covered by the insurance. Insurance coverage is not provided to medals, bonds, share certificates, travel tickets, deeds, manuscripts, passport, stamps, and documents of title, and bills of exchange. Please refer to the policy document for detailed information on the list of exclusions.
AIA Home insurance eligibility
The AIA Mortgage Term Insurance is issued to individuals aged 18 to 70 years and can be purchased for a specific tenure. The AIA insurance policy can be purchased online or through an AIA appointed representative.
AIA Mortgage Insurance Claim Process
In case of any insurance claims, you will need to download the “personal lines claim form” from the AIA Singapore website. After filling the form, this needs to be submitted to the AIA customer service centre. You can also contact the AIA customer service centre directly for any claim-related assistance. Based on your insurance claims, the representatives will assist you with the necessary steps to complete your claim process.
Cancelling AIA Mortgage Insurance Policy
In order to cancel your insurance policy, you will need to download the “policy closure form” from the Singapore AIA website. You will need to state the reason for closing your insurance policy. Once the form is filled, you can submit it to the nearest AIA customer service centre. You will be intimated once the closure process is complete.
FAQs - AIA Mortgage Reducing Term Assurance
What does the AIA Mortgage Reducing Term Assurance Plan cover?
This plan covers any your loved ones against any outstanding home loan repayments in case of death or diagnosis of a terminal illness or disability.
Till what age does the cover of the AIA MRTA plan extend?
This plan extends cover worldwide, up to the age of 75 years.
What happens to my remaining MRTA plan coverage if I have paid off my entire outstanding loan amount or decide to sell the property?
In this case, the remaining coverage can be used to take a new mortgage loan.
What are the payment options with the AIA MRTA plan?
You have the choice to make your payment monthly, quarterly, bi-yearly or yearly.
What is the home loan tenure which is covered under the AIA MRTA plan?
This plan covers home loans which have been taken for a period ranging from 5 years to 30 years