Debt Protection and Loan Cover

Debt Protection cover will enable you to release any personal guarantees on death or serious disablement in relation to money that the business has borrowed.

The policy is tailored based on your requirements and can be a combination of:
• Life Insurance
• Total Permanent Disability
• Trauma/Critical Illness

Most companies have at some stage borrowed money to expand, purchase new plant and equipment or supply working capital, and generally meet ongoing financial liabilities associated with running the business.

When a guarantee is signed by a Director it generally means the director has secured a loan for the business using personal assets. There may be variations within guarantees. If you are in a partnership you are personally liable to an unlimited extent for obligations (including loans) incurred in the normal course of business.

In many cases the result of losing a key person or one of the business owners places not only the business at risk but also the private assets of family members.

By taking out appropriate cover, business debt can be fully repaid in the event of death or serious illness.

Benefits of Loan and Debt Protection Cover:

• The release of guarantees on death or serious disablement.
• Protect the business and the remaining business owners.
• Reduce the risk of company/personal insolvency or administration.
• Reduce the risk of losing personal wealth and protection personal estates and assets.