The loss of a key person can put immense pressure on remaining owners if there are any outstanding financial commitments.
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 in case the business experiences 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 be difficult at short notice.
A policy is taken out on the life of a key individuals 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.