With interest rates at all time lows, business owners are relying on SBA and institutional loans more frequently to help grow their businesses. Business loans are great tools to acquire quick cash, but also bring about the concern of the physical loss of the business owner. In most cases, loans have requirements for life and disability insurance.

If a loan is intended to close quickly for funding purposes and traditional life insurance is out of the question due to underwriting time constraints, how does a business satisfy a lender’s closure requirements? Petersen International Underwriters offers a short term plan that can be quoted, underwritten and a policy issued to collateralize a loan within 24 to 48 hours. The simplified underwriting program requires only a one page application and a copy of the loan document (no medical exam is needed). This product will allow the insured to close the loan in a timely manner and provide the ability to seek more conventional, longer termed life insurance at his/her convenience.

Once the loan has funded, another concern arises regarding the possibility of the disablement of the borrower. Traditional DI carriers offer Business Overhead Expense policies, but the benefits are generally limited to 12 or 24 months. Another option is to assign personal disability benefits to the lender. As a better alternative, Petersen International offers business loan disability insurance which is specifically designed to provide benefits which indemnify the entire loan with a true own occupation definition of disability.

When one of your clients ventures into a business loan situation, for your client’s sake, please remember the unique financial protection tools offered by Petersen International Underwriters.