Business Loan Insurance
Business Loan Insurance is designed to help a business pay any outstanding borrowings such as loans, overdrafts or a commercial mortgage, should the person covered die or become diagnosed with a critical illness.
Business Loan Insurance is a type of insurance that helps protect a business from losing money in the event that someone important to the business dies or becomes critically ill. The policy premiums are paid for by the business, and they are designed to reflect the terms of any outstanding borrowings, such as loans, overdrafts, or commercial mortgages.
Why might Business Loan Insurance be useful
Business loan insurance can be very useful for businesses that have borrowed money from a bank or other lender. If the person covered by the policy dies or becomes critically ill, the insurance can help pay any outstanding borrowings. This can prevent the business from having to close down or go into bankruptcy following the death or illness of a key person.
How does Business Loan Insurance work
Level or decreasing term business loan protection pays out a pre-determined amount of money following the death or diagnosis of a critical illness of someone important to the business. The premiums are set up to reflect the terms of borrowing and can be either on a level term or decreasing term plan.
How much does Business Loan Insurance cost
Business Loan Insurance typically costs between 1% and 2% of the total value of the loan each year. This is something that you will need to discuss with your insurance broker, as the cost will vary depending on the size and nature of your business.
Who is covered by Business Loan Insurance
Business loan insurance generally covers the owner or key employees of a business. It is important to speak to your insurance broker to find out whether or not your business is covered and to what extent.
What happens if I do not have Business Loan Insurance
If you do not have business loan insurance and someone important to your business dies or becomes critically ill, you may be forced to close down or go into bankruptcy. This is because you will likely be unable to repay any outstanding borrowings without the help of the insurance policy.
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