Business Loan Protection | Disability Insurance
During a total disability, this policy provides reimbursement coverage for a variety of business-related financial loan obligations, such as:
- Purchase of a practice or existing business
- Facility renovations and improvements
- Purchase of a large piece of equipment
- An increase in working capital or build up of inventory
- Expansion of the business or practice
- Purchase of building or land
Types of loans not covered: line of credit, credit card, revolving line of credit, interest only
Benefits To The Borrower
- Helps them keep the doors of their business open
- Creates goodwill among their customers, employees, stakeholders and creditors
- May help them uphold their financial obligation and maintain their credit rating
- Benefits are a deductible expense for the borrower
Benefits To The Lender
- Helps your institution manage risk – transfers the risk of all or part of the loan obligation to Principal Life
- Helps ensure you continue to receive loan payments in the event of a borrower’s total disability
- May help you extend loans to additional borrowers
- Benefits can be assigned to the financial institution holding the loan, allowing for a direct benefit payment