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.
Business Loan Protection enables a business to repay a specific debt if a key employee or business owner dies or is diagnosed as critically ill before the debt is fully repaid.
The plan will have no cash in value at any time, and will cease at the end of the term. If premiums are not maintained, then cover will lapse.
The policy may not cover all definitions of a critical illness. For definitions of illnesses covered please refer to the Key Features and Policy Documents.