Operating Line or Lease Payment Protection
Operating Line or Lease Payment Protection
- Client Profile
- Business owner with lease payments, operating line of credit, etc.
- Concerned with maintaining business in the event of short term illness, so as to be able to return to business upon recovery, or to preserve value for sale
- Solution Opportunity
- Offset a number of month’s of lease payments or interest payments with a term critical illness policy and/or life insurance.
- Policy will pay in the event of qualified illness or death, allowing for business to persevere.
- If life insurance is used, where the interest on the loan is deductible and the lender has required insurance collateral, the cost of the insurance may also be deductible.
- Unlike creditor insurance, private insurance allows the business owner to actually own and control the insurance, as opposed to the bank.