Business Loan / Mortgage Loan Insurance
Taking out a business loan from a bank can be a important leverage for your business. Loan can be taken for your trade imports, to pay for your supplies, or even for a commercial property.
Do you know that such loans will require a personal guarantor as well? Usually it will be the director or the business owner himself.
However the problem comes when the guarantor meet with a premature death. The surviving member of his/her family can be held liable for the debt. Therefore a term life insurance policy or mortgage loan insurance should be taken out when the loan is approved. This will ensure the risk of death be managed.
“It is too expensive to buy”. This is usually not the case. Most business loans have a tenor of 10 years or less (unless for a commercial property). It will not be expensive to buy such life insurance policy due to the shorter term.