You need debt protection if your business owes money to Banks, Finance Companies, the IRD, landlord, staff, creditors or suppliers.
The early death of a business owner or key person in a business can be devastating for any business.
Statistics tell us that in a business with two partners around 35 years of age, there’s a 40% chance that at least one business partner will die before the age of 65. So how would the business continue to operate and grow without the key skills and knowledge of the owner or key person?
If you’re in a business partnership how can you ensure your business and your family’s best interests are looked after even when you’re not around?
The solution is debt protection cover.
Debt protection is designed to create the cash needed to repay business debt if an insured key person dies, is disabled or becomes critically ill.
Saving the family-owned business
Neil was 57 when lung cancer stopped him in his tracks. A printer since he took over the family-owned business at the age of 31, he’d never smoked so the diagnosis was something of a surprise. Neville recently purchased a state of the art printer and took on a large business loan – so when he suddenly found himself in hospital faced with removal of a lung and the knowledge that his working life was effectively over, the future of the business seemed in jeopardy.
Then Neil and his wife Pam remembered that their business had Total and Permanent Disability (TPD) with ‘own occupation’ cover, a back-up plan put in place several years ago. Payment from the TPD claim enabled the business to entirely repay the equipment loan. With the loan repaid, Neil and Pam’s business had the income necessary to hire a full-time replacement printer.