Lions Financial helps executives and businesses, and their tax and legal advisors develop optimal financial solutions for success. We have compiled a brief overview of Life Insurance Requirements For a Bank Business Loan.
Banks require insurance for a collateral assignment
Banks require insurance for collateral assignment so that they can always get any outstanding loan amount back if the loaner defaults or dies or before being able to pay the loan back.
Collateral is pledged as security for repayment of a loan, to be forfeited in the event of a default. A