The MRTA and MLTA involved banks and there are extra steps when you want to get back balance (insurance payout - loan amount), you need some one to make sure they do the steps correctly and your loved one really get the money from bank. Will the bank send an officer to help your family process the paper work?

In the end I just buy another normal life insurance for the loan amount. Money will goes to my loved one and they have the flexibility to use the money. Less hassle.