Watermark Employee Benefits  Business Loan Protection
Watermark Employee Benefits

Watermark is working with lending institutions to offer your clients Business Loan Protection1 for their business-related loans. This coverage transfers the risk of the loan from your institution to an insurance carrier in the event a small business owner becomes totally disabled and cannot work. It helps owners protect their businesses and helps protect your institution as well.

During a total disability, this rider 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

Business Loan Protection rider details

Issue Ages Benefit Amount Maximum Aggregate Benefit
18-60 Up to $20,000/month,
based on your loan amount
$2 million
Simplified & accelerated underwriting available up to $10,000/month
Greater loan amounts are eligible, but business loan protection may only cover a portion of the loan.
All existing loans with a minimum of 3 years remaining are also eligible
Types of Loans Covered
  • Term
  • Balloon2
  • Variable rate3
  • Commercial mortgage
  • Lease financing
  • SBA
Number of Owners
Fee-for-service professional = up to 8 owners Other small business owners = up to 4 owners

Advantages of the Business Loan Protection

  • Affordable premiums with discounts available
  • Premiums are a deductible expense for the business owner
  • Benefits can be assigned to the financial institution holding the loan, allowing the insurance carrier to pay the lender directly.

How it Works

  1. The business owner (loan applicant) identifies a need for a business-related loan and seeks one from your financial institution.
  2. Upon receiving the application for the loan, you refer the client to an advisor at Watermark.
  3. As your clients’ loan is processed by your institution, a Watermark Agent will concurrently apply for coverage with the customer to obtain a Business Loan Protection policy.
  4. Once the client is approved by the insurance carrier, final delivery requirements will be collected by Watermark and a policy will be issued.
  5. In order for the named financial institution to receive the loan payments directly at the time of total disability, the customer/owner of the policy assigns benefits to the institution.

Zac Woodward
Financial Advisor
Office (616) 284-0100 ext. 4
John Woodward
Financial Advisor
Office (616) 284-0100 ext. 1

1 Not approved in all states; not available in California.

2 Balloon loans are written for a specific number of years, with a balloon payment at the end of the period. These loans may be amortized over a longer period of time. The BLP rider covers the amount of the payment for the contractual time period as stated in the loan agreement (minimum of three years) rather than the amortized payment over the longer time period.

3 Variable interest rate loans can result in fluctuations in the monthly loan payment. The eligible monthly BLP amount is calculated using the lowest interest rate stipulated in the loan agreement.

Phone: (616) 284-0100
Fax: (616) 284-0090
Website: www.watermarkemployeebenefits.com/BLP

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