Business Loan Protection Insurance
Business loan protection insurance plans are designed to indemnify a lender for the balance of money at risk given a contractual business loan agreement. These loans will protect the buyer and you (the insured) in the event of death or disability.
Primary Uses of the Plan
For example, let’s say that you have a loan or venture capital deal that is ready to fund, but they require a term life policy in place. This is not unusual but normally one of the last steps necessary to receive your funding. Using a traditional term insurance policy, which is your least expensive option to secure this loan, takes time. Even if you are currently in underwriting with another carrier, the underwriting process can take up to 6-8 weeks to complete.
This is where we can come in with a short-term life insurance plan to fill this gap. These policies typically issue very quickly and are built specifically to cover the gap in coverage between the receipt of your funding and the issuance of your primary (fully-underwritten) term insurance policy.
Once your other policy is in place, we close out the contract.
No medical exam or medical records needed
Term insurance for up to 12 months
Benefit amount cannot exceed the loan amount
Coverage can be in place in under 48 hours
Health issues can be handled – some exclusions apply
High limit plans
Of course, in addition to business loan protection insurance, we can also provide you with the tradition plan necessary for the long term protection of your loan. For most people that we work with, that coverage will come in two forms: term insurance and business overhead expense.
We offer conventional level term insurance from over 50 carriers. Depending on the amount of coverage that you need, there will be a variety of requirements. For some people, it might be as simple as an application and phone interview but for others, the carrier could require a comprehensive medical exam, doctor records, and financial statements.
No matter what the underwriting process is, we help our clients every step of the way from running the quotes to putting your policy in force.
Business Overhead Expense
Business overhead expense is an important disability insurance coverage that all businesses should consider. These plans typically cover business expenses such as salaries, property-based expenses, and other fees.
A few of these policies have riders that can be added to cover a loan taken out for business related expenses. This is a popular strategy for protecting yourself and satisfying a lender.
Alternatively, you could choose to purchase a stand-alone plan that will specifically address the outstanding loan. Of course, these plans don’t cover any additional costs that the business might be exposed to should an owner become disabled.
If you have a business loan or any financial obligation, having some type of insurance is essential. The design of that insurance coverage is what can be challenging.
At www.highincomeprotection.com we strive to find the best plans for almost any situation. Call us today for a confidential discussion about our business loan protection plan. My toll-free number is 888-636-2310.
You can also feel free to fill out the quote form on the left and we will contact you.