Business Loan Insurance

When business isn't as usual, your loan payments will be

Business loan insurance can help you manage your debt and minimize potential cash flow problems, while still continuing to provide for your family and employees. It also helps preserve your personal savings and life/disability insurance, and keep business investments and other assets intact.

For most of us, the risk of premature death is the last thing on our minds. But if you died suddenly and left behind an uninsured loan, your family, beneficiaries, or business partners would face the additional business financial burden of repaying that loan. Resources you put aside for other purposes may have to be used for loan payments. Business loan or line-of-credit life insurance could pay off your debt in the event of your death.

Even a few months without you or another key person's contributions to your business can drain company resources and prevent the business from meeting your financial obligations to service any outstanding debts. Disability insurance on your business loan could cover your payments if you or a key person are disabled.

Something else to examine is the possibility that your premiums, or a portion of them, may be tax deductible. You'll want to consult a tax accounting expert for details.

The right advice makes all the difference

As with any decision regarding your business, speak with your business advisor to make sure your decisions are well-informed and aligned with your overall plan.