Answered by Tom Conner
Many thanks for your question. Many banks will require business loan insurance (usually in the form of a keyman life insurance policy) before agreeing to make a business loan. Essentially they want to make sure their loan can be repaid if you pass away.
Although some banks are very strict on this there is sometimes room for negotiation. For example, they may start off by saying that you need to be covered for life insurance and critical illness cover but then concede to just requiring life insurance (this would take about 75% off the premium). Also, they may start off by saying that every director needs to be covered for the full loan amount but I know of some banks that have then conceded to allow the sum to be split between the directors. With some banks it seems to work on a case by case basis.
I hope that helps. Please feel free take get in touch for quotes or further information.
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