Many businesses take out loans to start up a company or to expand their operation. And their ability to repay often rests on a few key people. Insurance helps to pay an outstanding loan if any of those key people were to become critically ill or die.
With so many options to consider, it can seem very confusing. So, to help you out we've answered some of your most common questions. For more specific advice about the options available for your circumstances, why not get in-touch with one of our friendly advisors.
Most types of business loans can be protected, including:
– Commercial loans and mortgages
– Venture capital loans
– Director’s loans
– Personal guarantees
Before taking out business loan protection cover, you will need to consider the following:
Under the terms of a loan, owners may be jointly liable, severally liable, or jointly and severally liable for the repayment of the loan.
Once this information is clear, you can set up a suitable policy for anyone responsible for the repayment of the loan. A loan protection policy can be taken out to ensure repayment of a business loan in the event of the death or critical illness of a shareholder, partner, member, director or sole trader.
You can select a decreasing or fixed sum assured, but the term of the cover needs to match the term of the loan.
To find out more about mortgages, personal insurance, business insurance and protection or to discuss the options available for your circumstances, contact our team of advisors