- Many small business owners are required to personally guarantee business loans, and often, this loan may be one of their largest expenses each month.
- The Business Loan Protection rider expands coverage beyond what is provided in an Overhead Expense (OE) disability policy. OE policies only reimburse for certain types of loan payments and the longest benefit factor is 30 months. The most common is 12 months. Yet most business loans are paid off over 5 – 10 years.
- The business loan protection rider pays the loan even if the business owner is too sick or too hurt to work. It can be added to an OE policy, but it can also be sold even if there is no overhead expense benefit. The benefit period will match the loan payoff period.
