Protect Yourself and Your Business Madison Brokerage Corp.

From www.MadisonBrokerage.com

Disability

Protect Yourself and Your Business

Jan 27, 2009 - 11:01 AM
Posted in: Disability
By

Business Loan Protection with Overhead Expense Insurance

Protect Yourself and Your Business

As an owner of a small- to medium-sized business, chances are you've needed to take out a loan to grow your business. But, what if you became too sick or hurt to work? How would you continue to make loan payments?

Principal Life Insurance Company offers a unique rider that helps make those payments and keep your business open during an unexpected disability. Adding the Business Loan Protection rider to an Overhead Expense insurance policy gives you more comprehensive protection for your business.

Benefits to your business

Protecting your ability to make loan payments in the event of a total disability:

May help secure a loan from a financial institution, since it shows your ability to pay back the loan in the event of a disability
Helps keep the business open and operating - helping retain employees and customers
Creates goodwill with customers, employees, creditors, lenders, shareholders and stakeholders that there is a 'contingency" plan in the event of a total disability
Helps eliminate financial hardships and create peace of mind with employees and other owners

About the Business Loan Protection rider

This rider (available for an additional cost) provides reimbursement coverage for a variety of business-related financial loan obligations, such as:

Purchase of a practice or existing business
Purchase of a large piece of equipment
Expansion of the business or practice
Facility renovations and improvements
An increase in working capital or build up of inventory
Purchase of a building or land

How your policy pays with this rider

The maximum monthly benefit Principal Life issues with this rider is based on the amount of your loan (up to a maximum benefit amount). Benefits are payable when you meet the policy's definition of a Total Disability: You are unable to perform the substantial and material duties of your occupation and are not working.

Once disabled under the terms of the policy, you must satisfy the rider's elimination period before being reimbursed for the loan obligation. You can also assign your benefits to the financial institution holding your loan and Principal Life will pay the benefits directly to it. Benefits are sent on the first loan payment date after the elimination period is satisfied and continue during Your Continuous Disability but not beyond the Business Loan Protection Date.

This rider offers guaranteed premium rates until you reach the Business Loan Protection Termination Date and it cannot be conditionally renewed beyond the age 65 policy anniversary. Your premiums are waived after you're disabled for 90 days. Principal Life refunds the premiums paid for coverage after the disability begins and continues to waive all premiums during your Continuous Disability.

Make sure it's business as usual

Principal Life's Business Loan Protection rider lets you keep the business healthy - even when you're not. Protect yourself, your personal assets and credit rating, as well as your business, its customers and employees against an unexpected disability.

FOR MORE INFORMATION

Contact Madison Brokerage 888-539-3232

This rider offers guaranteed premium rates until you reach the Business Loan Protection Termination Date and it cannot be conditionally renewed beyond the age 65 policy anniversary.
If you become Totally Disabled on the Business Loan Protection Termination Date, the Maximum Monthly Benefit is not paid for less than six months for Your Continuous Disability. If benefits are paid under this exception, any payment made after the Business Loan Protection Termination Date is paid to you.

FOR MORE INFORMATION

WE'LL GIVE YOU AN EDGE

Principal Life Insurance Company, Des Moines, Iowa 50392-0002, www.principal.com

This is a general description of this rider; it is not the rider and does not modify or change the provisions of any policy or rider.

May not be available in all states.

Disability insurance has limitations and exclusions. For costs and complete details of coverage, contact your Principal Life financial representative.

JJ 1368 | HH 702/HH 777 | 12/2008 | #11732122010