It shouldn't be compulsory... it is only compulsory to get lower -BLR. You can opt for minimum.

If you already have any existing life insurance that have some sum assured, you can choose to only buy the remaining amount to cover the rest/

Let's say you have a current insurance Sum Assured 100k for TPD/Death, and your property is 200k. You may just buy another 100k life insurance to work as MLTA. Combined together you will have 200k, it is enough for your loan amount. Can add in another rider for Critical Illness.
You can always buy more if you want, there is no limit since the beneficiary is on your choice, and how they want to spend it whether to pay for the house or others will be their choice. At least we know that we are not leaving a big burden to them in the event .... *touch wood*

Else if you are buying MRTA, you may need to do some calculation and ask what is the % set. Usually they are adjusted at the range of 6-8%.

The beneficiary has to be the bank for MRTA. MRTA usually covers only TPD/Death and not CI. You may need to double check with your insurance agent.

Hope that clears.

Check with your bank on this....

If I am not mistaken
Maybank's Etiqa will not allow this

But PBB's ING seems to be okay if I am not mistaken. Just change the beneficiary

This post has been edited by davidlow7: Jun 26 2012, 10:31 PM

As per what ecin mentioned above... But check with your banker for more accurate information.