If you intend to secure finance through commercial loans you may find this letter of interest. 

A commercial lender will often make a business loan subject to repayment on the death of a certain, often key, individual. Alternatively, when funding has come from a director’s loan account, if the director were to die then their estate may demand repayment of the outstanding loan. Have you thought how your business would meet any ongoing repayments, if one of your key people died? How would you finance full repayment should the lender request the loan to be repaid early? 

Business loan Protection can help to protect the future financial resources of your business by providing it with a cash sum that can be used to help repay a loan on the death of a key individual. 

It is also possible to arrange for a cash sum to be paid out, if the key person suffers from or is diagnosed with a critical illness. Please note the plan never has a cash-in value