Just look at the terms and condition whether it is compulsary or not to get MRTA from bank. Or else you can opt for life insurance coverage/MLTA from insurance company and assign to them if they require borrower to assign the policy.

It is always good to have something to cover your debt in case of unexpected event.

Hmm, it is quite risky though. If say a person pass away, next kin need to fully paid off the mortgage then they only can claim the property. Or else, they might face issue selling the property.

If mortgage is not served, bank will lelong the property and since the price might be much lower than market value, next kin might as well get nothing too ;(

Yes. Usually MRTA/MLTA covers death and tpd. In the event of death and tpd, insurance company will pay the bank and bank will release the title to next kin provided that a proper will is written.

Hmm, suppose can but subjected to SCB loan terms and condition.

However, i would like to highlight some issue.
Usually we refinance with a higher value. However, the MRTA reduces with time. Hence, kindly make sure the difference of coverage with the outstanding loan amount is manageable by next kin to avoid transferring issue.