Debt protection insurance is designed to repay debt. Whilst a bank may require you to take out life cover prior to drawing down a commercial loan, this may not be sufficient to cover the entire amount.
Taking out debt protection insurance helps to safeguard the future of the company, therefore providing peace of mind to you, your family, any business partners, and employees.
Here’s how debt insurance can help –
- It provides a lump sum to repay debt, preventing the company from being forced to liquidate assets or go under.
- For those that have provided personal guarantees against the loan, it helps protects personal assets like your family home and ensures that any debt does not get passed on to your estate.
- It maintains cashflow, enabling you to continue your normal operations and pay your suppliers.
- For those that are seriously ill or injured, it enables you to focus on your recovery by removing severe financial stress.
- For the families of those bereaving a loved one, it enables any debt to be cleared therefore securing the business as a valued asset either for sale or for those inheriting it.