1. What is Business Debt Protection?

Business Debt Protection insurance assists the company in meeting its financial obligations regarding the servicing of debt following the loss of the key person

2. What types of debt should I consider protecting?

Any debt obligations for which the business might struggle to meet should a shareholder die or be unable to contribute to the business.

This could include ;

• Making sure the business is capable of servicing its bank debt following Key person loss.
• The repayment or reduction of business loans following the exit of a shareholder, especially where personal guarantees have been provided
• Repayment of the current account of an exiting shareholder
• Reduction of working capital overdrafts to reduce financial pressure

3. What type of insurance do I need and how much?

This will depend on the type of debt, its servicing commitments and under what circumstances it might need to be reduced or eliminated.

Where ongoing servicing of debt commitments is required, disability related insurance may be most suitable. This can normally be factored into your Key Person Protection

If debt restructuring or repayment is required following the death or serious disablement of a shareholder then life insurance and permanent disablement cover may also need to be considered.

Advice Plus will work with you to clearly understand your debt obligations and whether you can manage your debt on your own. Where needed, we can develop a cost-effective protection strategy based on your individual requirements.