Business Loan/Lease Indemnification
A Gateway to New Markets
Banks, credit institutions and leasing companies are logical candidates to provide or recommend loan/lease indemnification to benefit their clients. The logic for such firms to concern themselves about the need for Loan/Lease Disability Indemnification comes from the very statistics supplied by the loan industry.
The Federal Home Loan Bank reports that over it’s many years it has determined the major cause of mortgage loan foreclosures is disablement of the mortgagee; 48% vs.. 3% due to death.
It is not uncommon for the lending firm to require life insurance as a condition to make the loan. Such insurance covers the consequences created by death (3%) and leaves abandoned the greatest hazard to loan default, disability (48%).