After saving for years to buy your home, it seems too careless to lose it because of disability, illness or retrenchment. If you don’t have a plan B for these instances, how will you be able to make your home loan repayments?
Disability and death are covered by Mortgage Level Term Asssurance (MLTA) or Mortgage Reducing Term Assurance (MRTA), but what about retrenchment?
If the word ‘retrenchment’ doesn’t send chills down your spine, the stats below would likely make you shudder.
From January to September 2015 alone, more than 20,000 employees lost their jobs in Malaysia, and the retrenchment trend is expected to continue in 2017. The truth is, job security is not what it used to be, and if you are unfortunate enough to be retrenched by your employer, getting another job immediately may not be as easy as well.
Hiring has also slowed significantly. Monster, a global online employment firm, said its year-over-year study of job postings on the Internet showed a 39% drop across all occupations and sectors in Malaysia.
Even jobs in the public sector were also harder to come by as the government froze hiring of civil servants except for critical positions last year.
