What is Business Loan Protection?
If a business owner dies or is suffering a severe illness, lenders may have the right to demand that any outstanding loans are paid back. These could be difficult to pay off at short notice. Loan Protection provides a lump sum to cover business loans. If a business owner lends money to their own business, creating a Director’s or Partner’s loan account, this may also need to be repaid on death.
Some business loans may also have personal guarantees, if the business fails due to the death or illness of an owner or key employee and the business doesn't have the funds to repay the loan, the guarantee could be used by the bank and put personal assets, including the owner’s home, at risk.
Lenders may have the right to demand that the business pays back any outstanding loans and this could be difficult to pay off at short notice.
Why should you speak to your clients about Business Loan Protection?
The benefits for your clients
- Peace of mind that if the worst were to happen, the business wouldn’t have to worry about financial difficulties due to loan repayments
- Protection against repayment terms as a result of personal guarantees in the event of the death or incapacitation of an owner
- Guaranteed Insurability option where cover can be increased in line with an increasing loan.
Not just good for your clients
The benefits for you
As an adviser, our Business Loan Protection is not only good for your clients but it is also good for you for a range of reasons:
- You can offer your clients more than just standard cover for owners
- There is an opportunity to sell further business solutions; key person cover, relevant life policy, and VitalityHealth SME schemes.
Where to next?
Enhance your clients' cover with a range of additional options to suit their needs and budgets.
Good health is good business. We aim to give your clients cover that's relevant to their business needs and pays out when they need it most.
Key Person Cover
Keeps things smoothly ticking over should your clients lose key business personnel.
Gives your clients a lump sum so they can keep control of the business if a shareholder or a business partner dies or suffers a serious illness.