A Start-up or Expansion Business Loan
If your business has a start-up or expansion loan, chances are you are relying on one or a few key people to repay it.
If something were to happen to one of those people, then business loan protection insurance needs to be in place to pay off the outstanding business loan amount.
Very often, directors will have given personal guarantees, or used their homes as security for the business loan. An insurance policy covering death and serious illness would mean that dependents are protected too.
What LifeSearch Business adviser will ask you
When you talk to a LifeSearch Business adviser about business loan protection, he or she will:
- check the amount of loan outstanding and search the market for the best value policy to cover that amount;
- advise on the tax position regarding the treatment of premiums and the sum assured;
- in the case of partnerships, advise each partner on taking personal cover written in trust to the other partners, which allows them to pay money into the business to repay the debt.