Business Loan Protection
Ease the financial strain following the loss of a key person
Losing one of your shareholders or a key person could have dramatic consequences for your business. In addition to the emotional upset, you may find your business in a precarious financial position. Suppose your company has borrowed money to meet ongoing costs or for investment. Could it manage the repayments if a shareholder or key employee died or was diagnosed with a critical or terminal illness? Or how would the business cope if the lender called in the debt?
Business loan protection
Business loan protection could provide for this eventuality. Business loan protection provides a lump sum to repay an outstanding overdraft, loan, or commercial mortgage should a key employee die or be diagnosed with a terminal illness. It could provide the financial lifeline your business needs at this traumatic time.
There are several options for your business loan protection, and we can advise you on the most appropriate. We’ll help assess your current level of debt, who your key employees are, your ability to repay it, and the level and type of protection you will need. We’ll research the whole of the market to find the most comprehensive and competitive policy and ensure your policy is set up in the most appropriate way for your business.
Get in touch for an initial free, no-obligation chat with an adviser about securing business loan protection insurance for your business.
Business Loan Protection FAQs
What is business loan protection?
Business loan protection is an insurance policy that repays a business loan if a key person, such as a business owner, dies or is diagnosed with a critical illness. The insurance payout is used to settle the outstanding loan balance, helping to protect the business from financial hardship.
Why is business loan protection important?
If a key person critical to your business’s success dies or becomes critically ill, your company may struggle to repay its loan. This financial strain could potentially lead to insolvency or loss of assets. Business loan protection will pay off the debt, preventing this scenario.
How does business loan protection work?
If the insured key person dies or is diagnosed with a critical illness, the insurance policy pays the business a lump sum. This money is typically used to repay the loan’s outstanding balance, ensuring the company remains financially stable.
What types of loans can be covered by business loan protection?
Business loan protection can cover several types of business loans, including bank loans, overdrafts, director loans and commercial mortgages.
What is the difference between business loan protection and key person insurance?
Business loan protection is specifically designed to repay loans in the event of a key person’s death or critical illness. Key person insurance pays out in the same event, but the funds can be used for any purpose, not just loan repayment.
Arranging business loan protection insurance can be a complicated process. Our experienced advisers can help you understand the options and secure the right policy. Contact us today for your free, no-obligation initial consultation.
