Protection for business loans against the impact of death or critical and terminal illness of key members of staff who have a direct impact on the business's profits, such as a business owner, director or employee with specialist skills.
Many firms borrow money to invest in their business or meet ongoing costs, but could your business manage the repayments if a key employee were to sadly pass away or were diagnosed with a critical or terminal illness?
Business Loan Protection could give your business a financial lifeline in the event of losing a key employee.
A key employee is any member of staff who has a direct impact on the business's profits. They could be a business owner, director or any employee with specialist skills.
Business Loan Protection with Legal & General can help your business pay an outstanding overdraft, loan or commercial mortgage, should a key employee die or be diagnosed with a terminal illness (with a life expectancy of less than 12 months) during the length of the policy. It could also pay out if they're diagnosed with a specified critical illness (if Critical Illness Cover is chosen at outset for an extra cost) during the length of the policy.
When you take out Business Loan Protection, your cover should reflect the amount your business owes in borrowed money. This can ensure that if you claim for a pay-out, you have sufficient cover in place to repay your business loans.
There can be serious implications for businesses that are unable to pay back loans, so Business Loan Protection can help to give your staff and stakeholders some peace of mind.
Business Loan Protection can be taken out on a 'level' or 'decreasing' cover basis. If a valid claim is made, the cash sum can be used to repay the businesses outstanding debt.
Being unable to repay loans can be a serious problem for a business following the death of a key person.
Business Loan Protection could give your business greater confidence in planning its financial future.
If you have any questions about Business Loan Protection, our team of expert financial advisers are available to offer professional advice and answer any queries you may have.
You can call us on 0800 197 9208 from 9am to 5pm Monday to Friday (note - we may record and monitor calls).
You can also email us at firstname.lastname@example.org to arrange a call back or book an appointment to speak to us.