Business Owners: Do You Sign Twice?

Business Owners: Do You Sign Twice? What That Second Signature on a Business Loan Could Really Cost You

As a business owner, you’ve worked hard to build something meaningful—your company, your livelihood, your employees’ stability. But what happens to your business debts if something happens to you?

Most business owners don’t realize that when they apply for a loan, lease equipment, or open a line of credit, they often sign twice: once as president of the corporation, and again personally. That second signature—your personal guarantee—puts your home, investments, jointly held assets, and even your kids’ future on the line if the business can’t repay the debt.

A More Beneficial Way to Protect Your Business

This is where Business Debt Cancellation Insurance comes in—a life insurance policy where the business is both the owner and the beneficiary.

Here’s how it works:

• If the business owner passes away unexpectedly, the insurance payout goes directly to the business, ensuring all outstanding debts—loans, leases, credit lines—are covered immediately.
• This allows the company to continue running without financial distress, keeps employees secure, and protects your family’s income stream.
• Even better, it allows you to put a guaranteed value on your sweat equity so your family benefits from what you’ve built—not just creditors.

Without this protection, your business could be forced into liquidation. Your family could lose their source of income. Your employees could find themselves out of work. But with Business Debt Cancellation Insurance, you safeguard your company’s future, protect your personal assets, and ensure your business legacy continues—even in your absence.

If there were a way to protect your family and your company from the fallout of that second signature—even if you couldn’t take advantage of it today—wouldn’t you want to know how?

If you’d like to see what this could look like for you, just get in touch.

Andy Kovacs helps business owners and families achieve financial security. Featured in The Globe and Mail, Cottage Life Magazine, CTV, and Radio 640 Toronto, his expertise stands out. He believes offence makes the highlight reel, but defence wins championships—ensuring you’re ready for life’s financial moments of truth.

He is also President of Moments of Truth Insurance Services, a Sun Life advisor, and proud sponsor of the Markham Board of Trade’s Breakfast Networking Series.

🌐 www.sunlife.ca/andy.kovacs ☎️: (289)-818-1741 📧: andy.kovacs@sunlife.com
Andy Kovacs
President, Moments of Truth Insurance Services | Sun Life