Many businesses take out loans to establish and develop their operations. More often than not, their capacity to repay the loan is reliant on a few key individuals. If either of those crucial people becomes critically ill or dies, the business loan cover can assist in paying off the outstanding loan.
Business Loan Protection is life assurance with or without critical illness cover included and can cover loan repayment and debts associated with the loss of a key person.
It is important for growing businesses to have this cover in place should the business experience the loss of an individual who has guaranteed a loan. Lenders may have the right to demand the business pays back any outstanding loans which can be difficult at short notice.
A policy is taken out on the life of a key individual at your business so that any money due from a claim can be used to help pay outstanding debts or loans.
The level of cover should reflect the terms of your loan and the amount needed to pay any outstanding borrowings.