Mortgage Reducing Term Insurance (MRTA)

Definition of "Mortgage Reducing Term Insurance (MRTA)"

Mortgage Reducing Term Insurance (MRTA) is an insurance policy offered in Brunei Darussalam, that provides insurance against loans or financing received from banks. Usually a one-off payment made at the time the loan is taken out. It will cover the repayment of the outstanding loan or financing to the financial institution if you are unable to do so because of death, disability or critical illness. The insurance company will pay the bank the outstanding amount and the bank releases the ownership of the property to the owner or his beneficiaries.