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Business Loan Protection Insurance

There are different types of business loan protection and an independent adviser from Active will guide you through the process to make the right choice. Active will take time to listen to your personal circumstances and how much you can afford to pay as well as the type and length of insurance that is required. You can focus on running your business.

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Active Mortgages - The UK's Leading Mortgage & Finance Specialists

Business loan protection cover

Business loans are a common source of finance for many companies. In the sad event of a key person or owner leaving the business through critical illness or death, business loan providers could make this unfortunate situation worse, by requesting any business loans to be repaid, if personal guarantees were made.

Repaying a loan in the event of a key person leaving the business is rubbing salt into what will already be an emotional and difficult time for the surviving colleagues. Business loan protection can ease this trouble and mean that the business can focus on transitioning through this tough juncture.

Business loan protection explained

This type of life insurance will provide a lump sum payment to pay off any outstanding business debts if an owner or key person becomes seriously ill or passes away. Business loan protection covers most types of corporate loans including bridging finance, commercial mortgages, overdrafts, and venture capital. 

Research by Legal & General shows that over 50% of businesses have a debt and the average is £176,000. If the death or illness is sudden, this can be a huge, unexpected cost that the business might struggle to cover. This could change the future of the business and its ability to survive and continue to operate.

There are several similarities to business loan protection and key person (or keyman) insurance. The main difference, however, is that with key person insurance, lump sum payments are intended to cover the cost of replacing or surviving the key person. Whereas business loan protection’s lump sum is solely intended for paying off outstanding debt. There are also tax differences between the two types of life insurance: ask an insurance adviser or your accountant for more details.

Taking out protection for business loans can be the difference between the business you’ve worked so hard to build surviving and continuing to thrive or falling into insolvency. You need to figure out what type of business insurance and corporate protection plans you should take out. Whilst it may not make economic sense to take out every type of policy, it is advisable to have insurance on what could destroy your business if you went without.

Expert business loan protection and other life insurance advice

Active has a team of life insurance specialists who work daily with clients who want to protect their businesses in the event of their untimely death or that of another key member of personnel. By using one of Active’s experienced business loan protection advisers, who specialises in complex cases, you can feel confident that you are getting the right advice.

There are different types of business loan protection and an independent adviser from Active will guide you through the process to make the right choice. Active will take time to listen to your personal circumstances and how much you can afford to pay as well as the type and length of insurance that is required. You can focus on running your business.

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Active Mortgages - The UK's Leading Mortgage & Finance Specialists

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What our customers say

Daniel Couchman
Daniel Couchman
12 January 2024
This review is long overdue - Active mortgages got us our dream home! I spoke with around 7 different brokers from different companies which didn’t know what they were talking about but then I found Simon at active - he was straight to the point and got us the best deal and the highest amount possible. I got a bit impatient at one point but that was due to the banks taking ages to process everything - active were calm and reassured us. Highly recommended. Excellent from start to finish Even sent us a gift for Xmas - thank you!
Meena Kanagavel
Meena Kanagavel
2 January 2024
Jamie Murray from Active Mortgages has been amazing in setting up the VAT loan, whilst we purchased our Land. Right from the start, Jamie has been proactive in finding the correct (BEST) deals for us and ensured everyone is aligned to complete on time.Highly recommend using Active Mortgages, and we would certainly be using them again for future projects.Thanks once again Jamie for all your support throughout Dec, appreciate your efforts in making sure our purchase was done on time. Many thanks Meena (and Mark Jones)
Stefan Stancila
Stefan Stancila
21 December 2023
Comprehensive advice from Jamie & easy communication through remortgage process . Recommend!
Yasmin Bates
Yasmin Bates
20 December 2023
Jamie has made the whole process of buying a house very straightforward, especially for self employed. Would 100% recommend and would use again too!
Gerard
Gerard
19 December 2023
Good experience, helped us every step of the way.
darren john coggins
darren john coggins
12 December 2023
Dan has been great from start to finish. As a first time buyer it can be quite overwhelming and confusing but Dan has went above and beyond. His process was very easy, efficient and we could not recommend him enough!
FUNMI AKINLAMI
FUNMI AKINLAMI
7 December 2023
Excellent service, hard working staff
akinlami akinwale
akinlami akinwale
7 December 2023
Excellent service, very patient and willing to help staff
Michael Bennett
Michael Bennett
5 December 2023
Dan has been great from the first phone call. He has made everything simple and taken the time to explain everything to me as a first time buyer, answering any questions I have along the way, highly recommend
james whitaker
james whitaker
31 October 2023
Great professional service highly recommended for anything financial
Active Mortgages - The UK's Leading Mortgage & Finance Specialists

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