Loan Protection

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What is Loan Protection?

VitalityLife's Loan Protection solutions mean you won't have to worry. If a business owner dies or becomes seriously ill, it provides a lump sum to cover your business loans and other credit facilities. What's more, with our guaranteed insurability option you can increase your cover in line with an increasing loan. If you choose this option your premium will increase depending on the amount of additional cover applied for. Maximum increases will apply.

Why do I need it?

If your business borrows money, it’s understandable you will want cover to repay all, or some of that loan on the death or severe illness of a key person. If you lend money to your own business, creating a Director’s or Partner’s loan account, this may also need to be repaid on death. Some business loans may also have personal guarantees, if the business fails due to the death or illness of an owner or key employee and the business doesn't have the funds to repay them, the guarantee could be used by the bank and put personal assets, including the owner’s home, at risk.

Lenders may have the right to demand that the business pays back any outstanding loans and this could be difficult to pay off at short notice.

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