Protection for all business loan arrangements, Loan Protection is normally arranged with a term assurance policy, taken out to provide cover against death or diagnosis of a specified critical illness (where the option is chosen) that could adversely affect a business’s ability to repay a loan. Before securing funds, a business will often be told that Loan Protection (and its assignment), is a condition of arrangements with the lender. The reason for this is security.

However, many businessmen and women still mainly think of a business loan as their commercial mortgage. If a director has given a personal guarantee for a bank overdraft or loan or, as very often happens, has a Director’s Loan account with a substantial amount held by the company , a Loan Protection policy could protect both the company, their home and family should they die or have a critical illness.

Any insurance which is based on an assessment of the health of the applicant is unlikely to cover previous or existing medical conditions. However, here at NJL Consultancy we offer expert advice to help ensure you have the right type and level of cover, and help you to understand the policy documentation as to what and what is not included.