We shop around up to 30 insurance companies to bring the lowest quote for you...GUARANTEED!

>> Business Loan Protection

It can be difficult to obtain adequate debt financing for a small business. Creditors will often require the business owner to personally guarantee a loan. The death of the business owner or another key executive may cause creditors to demand immediate repayment of outstanding business debts. This can place a significant burden on the business and force the liquidation of key business assets at fire sale prices at a time when business results may already be severely impacted by the death.

In addition, if the business owner has personally guaranteed the debts incurred by the business, the owner or the owner’s estate may be liable for any outstanding debts that the business is unable to pay. If effective planning hasn’t taken place, the business may not survive the owner’s or another key executive’s death. A solution is for the business to purchase an insurance policy on the life of the business owner(s) or other key executives. Proceeds from the life insurance policy are taxfree and may be used to pay down the outstanding business debts. A creditor may require a small business to purchase collateral life insurance to protect the creditor’s interests, particularly if the death of the business’s owner could affect the value of business assets used to secure the debt. In other cases, the business owner may simply want to ensure that business debts will be fully repaid if he or she dies to minimize financial risks for heirs and to permit the business to continue free of debt. Generally, life insurance premiums paid for business loan protection are not deductible for tax purposes.

However, if a life insurance policy has been collaterally assigned to a restricted financial institution, a portion of the premiums may be deductible. A life insurance policy purchased for business loan protection can help a business negotiate loans and repay business debts with tax-free life insurance proceeds when a business owner or another key executive dies. It can also prevent business owners or their estate from becoming personally liable for the business debts if the owner dies.

Get Free Quotes >>
  • Subscribe to Newsletter to stay update
    Name *
    Email *
  • Insurance Videos
  • Our Insurance Carriers
Request a Call
Contact First Name:
Contact Last Name:
Email Address:
( ) - -
Best time to reach you:
Things to discuss:
Ask An Expert
Your Question:
How would you like to be contacted:
Contact First Name:
Contact Last Name:
Email Address:
( ) - -
Best time to reach you:
Set Your Phone or Email Reminder To Avoid Delays Or Misses
Reminder Date :
How would you like to be reminded:
Contact First Name:
Contact Last Name:
Email Address:
( ) - -
Best time to reach you:
Overhead Expense Calculator
Enter average monthly expenses incurred in the opration of office
1. (A) Rent or $
  (B) Property Taxes and mortagage interest payments plus depreciation or principal payments $
2. Office Maintenance $
3. Public utilites(heat,water,electricity) $
4. Telephone,Postage,Paging,Fax and answering service $
5. Employee salary and benefits (except as below) $
6. Management company fee (excluding family owned firm) $
7. Accouting Service $
8. Professional Association Membership fees $
9. Property and liability insurance premiums $
10. (A) Leased equipment or $
  (B) Iinterest plus depreciation or scheduled principal payments for equipment $
11. Interest plus principal payments for business loan from a financial institution to purchase business $
12. Other fixed expenses (normal and customary) $
  Total $0
  Do not include expenses for :  
1. The purpose of acquiring goods for sale,supplies or addtion to inventory  
2. Salaries,fees,drawing account or renumeration for: the proposed insured,any member of the proposed insured's profession or related profession,any person sharing the expenses of the proposed insured  
3. travel and / or entertainment