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Business Loan Protection safeguards businesses against the early death of a person who has guaranteed a business loan, perhaps from the bank, or lent money to the business in the form of a director's loan.


Banks often grant business loans on the basis of the involvement in the business of certain key employees. If such a key employee is no longer part of the business perhaps because of their premature death, the bank may well require the loan to be repaid early. This can cripple a business if the funds are not immediately available to repay the debt. In a similar way, it is also common for directors to make loans to their companies, and these can be protected in a similar way.


Business Loan Protection is similar to Key Person Protection, but rather than having to ascertain the value of the Key Person to the business, the life cover benefit is set up for the amount of the outstanding debt. The benefit is then used to repay the associated business loans.

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