Our research shows that over 50% of businesses have a debt and the average is £176,000
Business Loan Protection helps your client pay an outstanding overdraft, loan or commercial mortgage, after the death or diagnosis of a terminal illness (life expectancy is less than 12 months) or critical illness, if chosen, of the loan’s guarantor, while the policy is in place.
Business Loan Protection is either life insurance or life and critical illness cover written on the life of a key individual or individuals. In the event of a valid claim, any money due can be used towards paying off an outstanding debt or loan.
The money will be paid to the business where it is a company, Limited Liability Partnership (LLP) or Scottish Partnership.
Where the business is a partnership, the policy will be written on an own life basis and may be placed in Trust for the other partners.