Business - Key Person Protection
Key Person Loan Protection
What is Key Person Loan Protection?
Most types of business borrow money at some point to assist in their growth and development. The cost of these loans is usually covered by the business’s income. But this income can be affected by the loss of a Key Person or someone who has acted as a guarantor for the loan. As with Key Person Protection, these consequences can be significant.
Unpaid loans can result in a loss of confidence by banks or other moneylenders. This can have a devastating effect on the business’s ability to grow or even survive.
Our Key Person Loan Protection allows a business to put in place an appropriate solution that will provide funds to repay any borrowing.
How we can help
Our Key Person Loan Protection can be arranged to provide payment in the event of death, critical illness, or both.
The business will need Life Cover on their key individuals to provide security for outstanding loans with the capital sum outstanding being used to determine the amount of cover.
Three types of loan may exist:
- Commercial loans
- Directors’ loans
- Personal guarantees.
