In many instances when a business borrows money, the financier will require the business owner to sign surety for the business loan. When the business owner dies, the financier may demand repayment of the loan from the business owner`s deceased estate. This might have dire consequences for any dependants.
To prevent this, the business can take out life cover on the life of the business owner. The payout from the life insurance policy is then used to repay the loan from the bank on the death of the business owner.
CONTACT SANLAM NOW to discuss your insurance requirements.