Many lenders require purchase of Term life insurance as collateral for individuals to obtain small business loans. The insured person and lender simply sign a collateral assignment form that assigns to the lender the amount of life insurance that is needed to cover repayment of the loan. The remainder of the death benefit is paid to the beneficiary of the borrower's choice.
Sometimes business use life insurance on a key employee to obtain business expansion loans.
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Many lenders require purchase of Term life insurance as collateral for individuals to obtain small business loans. The insured person and lender simply sign a collateral assignment form that assigns to the lender the amount of life insurance that is needed to cover repayment of the loan. The remainder of the death benefit is paid to the beneficiary of the borrower's choice.
Sometimes business use life insurance on a key employee to obtain business expansion loans.