Loan Protection

If a business has a bank loan which is repayable on death and secured on the personal assets of the director(s) via personal guarantees, this could result in a directors personal assets (home etc.) being repossessed by the bank to repay the loan following the death of a director. A life (or life and critical illness) policy for the amount and term of the loan ensures that in the event of death the p!olicy pays out and the personal assets of the director(s) are safe.