Loan Protection Insurance
Do you have a business loan contract, signed by the all partners in your business? If one of those guarantors dies, will the bank call in the loan? Can you afford to repay it?
If a key member of your business team dies and you have to restructure your finances, you may find it very difficult to secure alternative funding. Banks may be wary of lending until they see how well your business copes after the loss of someone so integral.
Even if you can secure a new loan you might have to pay higher interest rates, especially if you have to make the arrangements at short notice. The impact of higher repayments on your cash flow, at a time when your business is already struggling to adjust, could be grave.
Loan protection cover offers you the long-term funding to carry on if something happens to you or a partner. Each policy will be tied to a specific business debt, so it will have a defined life span tied to the duration of your loan, and will expire once your debt is repaid. If someone critical to your business dies or becomes seriously ill you can claim a lump sum equal to the outstanding amount on the loan.
Loan protection insurance can be bundled with any other business life insurance to provide a comprehensive package. Our life insurance specialists can answer all your questions about the business life insurance products on offer and help you understand and compare your options.
We work with all the leading providers of Life Insurance in Australia. Get instant online quotes now.