Business Loan Disability Insurance

This is used to cover fixed-term financial obligations, business loans or other contractual financial obligations.  It can fund up to 100% of any financial obligation directly to the lender that requires regular payments over a defined term. 

Such obligations can include:

• Business start-up or practice purchase loans
• Capital improvement or expansion loans
• Employment contract guarantees
• Equipment purchase or lease agreements

Business Loan Disability Insurance can be applied for at any time, whether you're currently taking out a loan, or whether you're partially through paying it off.  The policy duration is matched to the remaining length of your financial obligations, giving you precisely the coverage you need.

Consider the example of a policy acquired at the same time you take out a 10-year loan.  The policy term would also be 10 years.  The number of months for which the policy provides benefits is reduced as you pay down the debt and the remaining length of the financial obligation is reduced.  However, the full monthly benefit is payable until the policy's date of termination or until you recover.

In this 10-year loan scenario, let's say you become totally disabled three years after taking out the policy and remain totally disabled.  After satisfying the waiting or elimination period, benefits would be payable for the remaining time of your loan; nearly seven years.

While this expense could be covered under overhead expense disability insurance, which usually covers only a benefit period of 12 to 24 months, Business Loan Disability Insurance can provide protection that best suits the unique needs of your business.