What is Loan Protection?
As a Business Owner, you may, from time to time, need to raise a loan in order to provide vital investment, allowing your company to grow its’ profits. When doing so, it is important to ensure that there is a suitable Protection policy in place which would enable these loans to be repaid, were one of the Business Owners to die.
Why should Loan Protection be considered by the Business?
- The death of a Business Owner could impact significantly on the ability of the Business continuing to make the loan repayments.
- The provider of the loan (often a bank) could request immediate settlement of the loan, were one of the Business Owners to die or become terminally ill. This could be difficult at short notice.
What else do I need to know?
- Limited Company, Limited Liability Partnership (LLP) and Scottish partnerships are eligible to take out Loan Protection.
- There are different ways in which policies can be arranged which we can discuss with you.
- Polices can be set up to include Critical Illness cover.
- We can discuss the potential tax implications associated with this type of cover however strongly recommend you seek independent tax advice.