Did you know that as a business owner, your personal guarantees remain in force and transfer to your estate (in this case, your wife and kids) in the event of your death? Furthermore, unless some debt protection is in place, they’ll be forced to liquidate their biggest asset — the family home — just to cover your business debt. Not what they need at such an emotional time!
Business Debt Insurance provides your business with funds to repay or reduce business debts in the event of you or your business partner’s death or disablement.
Axiom Risk can provide you with a professionally structured debt protection strategy to provide your estate with the money needed to pay any debts thus releasing the personal guarantee. By doing this, it allows the outgoing owner (or their family), to apply for a discharge of the personal guarantees; and provides cash flow for the continuing owners. It also provides confidence for customers and suppliers to know the business will continue trade during and after the loss of an owner.
In a business with just two partners, the chance of one partner dying or being totally disabled before age 65 is over 50%. In a four partner business, the figure leaps to 77%*.
*Zurich Mortality and Morbidity calculator, 2004