Business Loan Protection
When a bank lends money to a business, the lender will usually require proof of disability insurance equal to the loan payments. Business Loan Protection is designed to satisfy the lender's requirements so the loan can close without delays — and to keep your loan payments covered if you become too sick or hurt to work.
Who It Helps
- Business owners borrowing to buy, build, or grow a business — including start-ups and franchise purchases
- Owners financing commercial real estate, equipment, or construction
- Borrowers with SBA loans, working capital loans, or lines of credit who must show proof of coverage to close the loan
How It Helps
- Satisfies the lender's insurance requirements so the loan can close without delays
- Benefits are tailored to the stipulations of the loan agreement — covering 100% of the monthly or lump sum loan payments
- Pays your loan payments without interfering with your personal disability insurance
- Benefits can be assigned to the financial institution holding the loan
Product Details
- True "own occupation" definition of total disability — based on the occupation you worked in the 12 months before your disability
- Monthly benefits begin after the elimination period and continue as long as total disability lasts, up to the benefit period
- Each separate claim receives a full benefit period eligibility
- Lump sum benefit if you become permanently totally disabled — up to ten times annual income
- Optional Residual Rider pays a monthly benefit when an accident or illness reduces your income by at least 15% — full benefit at 80% or more
Loan Types Covered
- SBA loans and working capital loans
- Commercial real estate loans and construction financing
- Equipment financing and lease financing
- Start-up loans and franchise start-up loans
- Business acquisitions and business-only loans
- Lines of credit and merchant account cash advances
Common Questions
Will this coverage interfere with my personal disability insurance?
No. The coverage is designed to pay your business loan payments without interfering with your personal disability insurance, which stays with you and your family.
How are benefits paid?
Monthly benefits begin after the elimination period and are paid for as long as total disability continues, up to the benefit period. If you become permanently totally disabled, a lump sum benefit — up to ten times annual income — is paid.
Can the benefits go directly to the lender?
Yes. Benefits can be assigned to the financial institution holding the loan.
What if an illness or injury reduces my income but doesn't stop me from working completely?
The optional Residual Rider pays a monthly benefit if your income is reduced by at least 15% due to an accident or illness. If your income is reduced by 80% or more, the full monthly benefit is payable.
What counts as total disability?
A true own-occupation definition: solely due to sickness or injury, you cannot perform the substantial and material duties of your occupation — even if you are working in another occupation.
Ready to Get Started?
Download the RFP below and return it, or call us at 970-403-3344 — we'll get back to you the same day.