borrowed money or entered into debt to
finance it. If so, it's important to make sure
that you and any other key people a
co-owner, loan guarantor or third party
who has left money to the business have
suitable insurance cover.
associate/s), the insurance payment could
be used to reduce or repay debts, and protect
any personal or business assets used as
loan security.
· Loanssourcedfromalendinginstitution
as the family home) or practice assets
(such as business real property).
director of a company lends money to
the business, or the trustee of a trust
distributes income to beneficiaries
on paper and retains the cash to fund
operations or expand the business).
entity (such as a family trust or company).
problems can arise if you (or another key
person) are lost to the business either
temporarily or permanently.
could have concerns regarding the business's
cashflowandcreditposition,andmay
require the outstanding loan to be repaid
immediately.
so the debts can be cleared.
yourself and other key people against death,
total and permanent disability, and
critical illness.
· Reduceorpayoffthedebts.
· Releaseanyloanguaranteeor
· Makesurethebusinesscancontinueas
for highly geared businesses but less important
for practices with lower debt-to-equity ratios.
To determine the types and amounts of cover
you may need to protect your assets, speak to a
financial adviser who specialises in insurance
for medical practices. A financial adviser can
also review your insurance needs over time to
make sure you remain suitably covered.
all possible circumstances.
National Manager
Insurance at MLC
Insurance.