Business loan insurance
What is Business Loan Insurance?
Business loan insurance is a type of financial safety plan that protects your organization’s economic future in the case of an unexpected accident (death or chronic illness) to one of the partners. When your business is protected with business loan insurance, your company won’t go bankrupt and the insurance will secure the payment of the entire business loan.
Business loan insurance benefits a company in many ways. From protecting the company’s financial future to supplying financial resources in the case of an emergency, business loan insurance will have several advantages for your organization. In addition to protecting a company financially, business loan insurance also protects the owners and employees working in the firm.
Business Loan Insurance Coverages
Business loan insurance has three different coverages. These coverages include:
Life Insurance Protection
When the owner of the company dies, a business loan insurance will pay up to a certain amount, depending upon the insurance type, to cover all the pending loan installments. In case the owner or the key person is diagnosed with a critical disease and only has a few months to live, the business loan insurance plans provide early death benefits as well.
Disability Insurance Protection
In case if the owner is physically or mentally incapable to fulfill his duties and run the business, the business loan insurance will cover some percentage of the loan up to a certain time period. The loan repayment amount and time may vary as per the insurance plan you buy.
Accidental Insurance Protection
In case the owner experiences severe injuries after meeting an accident, the business loan insurance will cover the repayment of a portion of the loan. In the majority of the cases, accidental protection is covered in the life insurance protection itself.
When Do You Need a Business Loan Insurance?
In case you have taken a business loan for your company, buying a dedicated insurance plan will be helpful. Not only will it safeguard your company’s financial future, but it will also protect it from going bankrupt.
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