Business Loan Protection
Many factors can affect your ability to repay a business loan. So, it makes good business sense to protect against those that may affect you directly.
Many businesses take out loans to start a company or to expand. Their ability to repay will often rest with a few key people. It is sensible for a business to make sure it has provision in place to pay an outstanding loan if key personnel were to be diagnosed with a critical illness, or die.
Does your business have outstanding debts or loans?
- Who is the guarantor for each loan?
- What happens if they die or become critically ill?
- How would you fund that repayment?
Business loan protection is similar to personal life insurance taken out to cover a mortgage. In the majority of cases, your client can protect the full amount with life cover, or life and critical illness cover. When they make a claim, the sum insured is paid to either the business or directly to the lender if the cover has been assigned to them.