Town & County Financial Services Business protection

Business Loan Protection

Many factors can affect your ability to repay a business loan. So, it makes good business sense to protect against those that may affect you directly.

Many businesses take out loans to start a company or to expand. Their ability to repay will often rest with a few key people. It is sensible for a business to make sure it has provision in place to pay an outstanding loan if key personnel were to be diagnosed with a critical illness, or die.

Does your business have outstanding debts or loans?

  • Who is the guarantor for each loan?
  • What happens if they die or become critically ill?
  • How would you fund that repayment?

Business loan protection is similar to personal life insurance taken out to cover a mortgage. In the majority of cases, your client can protect the full amount with life cover, or life and critical illness cover. When they make a claim, the sum insured is paid to either the business or directly to the lender if the cover has been assigned to them.

Business Loan Protection enables a business to repay a specific debt if a key employee or business owner dies or is diagnosed as critically ill before the debt is fully repaid.