Barry and his wife own a shop selling Italian handmade ice-cream which has become very popular among young adults.
They decide to expand the business and open two more shops in prime locations.
To carry out their plan, they need to borrow USD750,000 from a bank over a period of five years. The loan must be repaid should Barry die during the loan period.
His financial professional suggests that they should take out a loan protection policy with a sum insured of USD750,000 and a term of five years.
Should the unfortunate happen, the proceeds from the policy can be used to pay off the loan.
Without the protection, his wife would have to sell some of the assets or even close down the business to repay the loan.