Many businesses take out loans to help start the company or to expand their current operations.
If a business owner dies or suffers a terminal illness, lenders may have the right to demand that any outstanding loans be paid back. These could be difficult to pay off at short notice.
Business Loan Protection pays out a lump sum to repay business loans if a shareholder or a business partner dies or suffers a serious illness.
They both sound very similar, but there are differences between how the two are calculated.
The amount insured for loan protection should match the amount of the outstanding loan and the term of the policy should match the remaining term of the loan.
With Key Person Cover, the amount insured is calculated on loss of profits or replacement costs, so there could be differences.
For more information about Business Loan Protection, speak to one of our expert advisers on 0800 211 8700. Alternatively, fill in our online enquiry form below.
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