What happens if the loan value is below the MRTA face value. Or if you die after you paid off your loan?

Will the bank return the excess to youe next of kin?

MRTA only protects the outstanding balance of the loan. So you are at a loss in terms of insurance coverage (over insured) if you are paying extra every month. If you pay it off earlier, you can only claim the surrender value of the policy.

You are looking at MLTA if you want level term payout.