Monday, September 04, 2006

Learning new terms in Malaysian financial studies

Real Estate Investment Trust - REIT -

A security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. REITs receive special tax considerations and typically offer investors high yields, as well as a highly liquid method of investing in real estate.
Equity REITs invest in and own properties (thus responsible for the equity or value of their real estate assets). Their revenues come principally from their properties' rents.
Mortgage REITs deal in investment and ownership of property mortgages. These REITs loan money for mortgages to owners of real estate, or purchase existing mortgages or mortgage-backed securities. Their revenues are generated primarily by the interest that they earn on the mortgage loans.
Hybrid REITs combine the investment strategies of equity REITs and mortgage REITs by investing in both properties and mortgages.

Mortgage Reducing Term Assurance - MRTA
Protect your home, your loved ones and your lifestyle

MRTA is a reducing term life assurance specially designed to protect a loan borrower against death or TPD (total permanent disability) due to natural or accidental causes.

Benefits at a glance
Guaranteed Benefit
To Settle Your Mortgage Balance MRTA simply ensures that your mortgage will be settled and thus securing the repayment to your housing loan. A guaranteed benefit payment (based on the table of reducing sum assured) becomes payable upon death or TPD (subject to standard exclusions on death or TPD).
Liberal TPD Definition
If you cannot perform your own or similar occupation by training, education or experience for a period of six consecutive months, the TPD benefit becomes payable. While, in other MRTA plans offered, the TPD benefit only becomes payable if a borrower cannot perform any work to earn a living for the rest of his/her lifetime.
Guaranteed Acceptance
Acceptance is guaranteed for loan borrowings up to RM150,000 and entry ages up to 50 years next birthday subject to a pre-existing condition. No medical is needed and no hassle.
Flexible Coverage
Equally applicable for completed properties and properties under construction (i.e. Full level term coverage during the period of construction).
24 Hours Worldwide Coverage
Receive protection 24 hours a day, anywhere in the world.
Single Premium Payment
Enjoy full protection by paying a one-time single premium for the entire duration of your loan.
Premium Financing
Pay your single premium by amortizing it over the period of your loan with premium financing. Premium financing eases your load and making it very affordable to you.

MRTA can also be called MDTA where D stands for "deducing". The down side to MRTA is that it doesn't benefit you but only for those around you. It's like buying Life Insurance instead of a Medical Card. Your family gets the money when you die with a Life Insurance, but with a Medical Card, it helps pay for your medical bills.

Stuff to look into:
- KL performing arts center in Sentol West (sponsored by YTL Corp.)
- For fund managers, stock firms, public listed companies related studies. (Chartered Financial Analyst)
- MCA sponsored Lifelong Learning programme.

Thanks to Daphnie Teo for these advices.

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