What would happen if you could not make the payments on an outstanding business loan?
Is the balance of your business loan protected if a shareholder, partner or key person dies?
Business loan insurance pays a lump sum during the term of the policy. You can use this to pay the outstanding balance of your company’s debts.
Talk to an Assured Life Adviser today to find out how business loan insurance will protect your business.
What is business loan protection?
Every company needs capital to start up or expand and most take out a loan at some point. Business loan insurance guarantees that loans, overdrafts or commercial mortgages are paid off if the guarantor dies or becomes critically ill.
When a business borrows money, and the loan is still being repaid, this insurance will protect the outstanding balance if anything happens to the people who guarantee the payments.
Why is business loan protection essential?
Smaller businesses share financial commitments among owners, directors and certain key people.
If one of these people dies or becomes critically ill, the other directors come under pressure to pay any outstanding loans immediately.
It’s wise to cover every business loan with a business loan insurance policy.
What does a business insurance policy cover?
Policies can cover life and critical illness.
Life insurance. This cover pays a lump sum if the key person dies or becomes terminally ill before the policy ends.
Life with critical illness cover. The business receives a lump sum if the key person dies, becomes terminally ill or suffers a critical illness defined in the policy.
A policy should cover the balance of the loan:
- Level term – pays a set amount at any time during the policy period
- Decreasing term – pays the outstanding balance (which reduces during the period of the loan).
Which type of business loan insurance policy is the most suitable for me?
Talk to an Assured Life Adviser about the financial responsibilities of the key people in your business. It’s important that business loan risks are covered appropriately to enable the business to continue.
Get in touch
A specialist Assured Life Adviser will talk you through the cover you need for your circumstances.
Speak to us today for specialist advice about business loan insurance.