More often than not, when business owners borrow funds from the bank, the loan is secured by their personal assets (commonly the family home). Only when the loan is fully repaid, will the guarantee be released.
Guarantor protection insurance will primarily protect the guarantor and their estate. It will also protect the business. However as many banks will treat the death or serious illness of a business owner as a default, this can lead to the bank seeking repayment, or at least re-negotiation of the loan.
The following four events can and should be insured through both personal insurance, and business insurance:
- death
- permanent disability
- temporary disability
- serious illness
To find out how DBT can help protect you, contact us today.
